How to Maximise Government Age Pension

How To Maximise Government Age Pension

1. Income Reduction:

The Age Pension is subject to income tests, meaning your income from various sources, such as employment, investments, and superannuation, can affect your pension amount. Reducing your assessable income through strategies like working fewer hours or salary sacrificing into super can potentially increase your pension entitlement.

2. Asset Reduction:

Similarly, the Age Pension is subject to asset tests, which consider the value of your assets such as property, savings, and investments. Reducing your assessable assets, for example, by paying off debts or gifting assets within limits, can potentially increase your pension entitlement.

3. Superannuation Strategies:

How you manage your superannuation can impact your Age Pension eligibility. Strategies such as withdrawing a lump sum from your super or converting assets into income streams like annuities can affect both your income and asset tests. There are now far more options to consider in relation to annuity-style products – not only for retirees – but for pre-retirees that can potentially decrease their assets for Centrelink purposes due to generous concessions for certain types of superannuation products. By establishing annuity-style products you can receive a 40% discount on the assets test. Further, income and, indeed security of income can be increased in several ways:\

  • a) an increase in eligibility for the Government Age Pension, meaning people that could previously have no eligibility for the Government Age Pension can now receive a significant amount making one less reliant on regular, private pension assets – or people achieving modest access to Government Age Pension can now receive significantly more
  • b) Annuities can pay out higher levels of income (reflecting the fact that, on the other side of the equation is an insurance company that will profit when some annuity recipients die earlier than others)
  • c) These annuity streams can be guaranteed income streams for your lifetime meaning less worry about outliving one’s savings.

4. Homeowner Considerations:

If you own your home, it’s generally not counted in the asset test.

5. Seek Professional Advice:

Eligibility for the Age Pension can be complex, and the rules may change over time. Consulting with your local Sunshine Coast financial advisor, Mike Beal Financial Planning, we can help you understand your specific circumstances and explore strategies to maximise your pension entitlement. Go to this link – it will only take a minute for you to fill in and we’ll get back to you quickly. Alternatively, email Mike on: