A recent VicSuper study revealed that two in five retirees were unaware of the new age pension framework and much tougher age pension asset test limited that will be imposed from 1 January 2017.
The Government estimates that this measure will see 91,000 part-pensioners lose their Age Pension completely while another 235,000 part-pensioners will see their age pension reduced.
If you are currently assessed under the age pension income test your pension entitlements will not change. It you are a part pensioner currently assessed under the age pension assets test your pension entitlements are likely to be cut.
» If you are a homeowner couple with $800,000 in superannuation savings your combined age pension will be cut from $14,745 pa to $1,232 pa.
» If you are a single homeowner with $400,000 in superannuation savings your age pension will be cut from $15,355 pa to $11,105 pa.
» If you are a non-homeowner couple with $1,000,000 in superannuation savings your combined age pension will be cut from $12,855 pa to $1,232 pa.
» If you are a non-homeowner couple with $700,000 in combined superannuation savings your combined age pension will be cut from $9,564 pa to $3,304 pa.
There may be opportunities to help reduce the impact of these changes and enhance your overall cash flow. If you are concerned how the assets test changes will affect your family please call our office on 1300 659 677.
Regards,
Michael
