TIME is ticking for retirees to apply for new superannuation pensions before changes in legislation will make many previous eligible Australians not able to receive as much or anything at all.
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Eligibility for the age pension is worked out by taking into account how much income you get (the income test) and how much your assets are worth (the assets test).
The test that results in the lower pension rate will be the one applied.
Upcoming changes in legislation set for January 1, 2015, could potentially knock thousands off the age pension that people receive in retirement.
About 65 per cent of older Australians rely on a government pension or allowance as their main source of personal income at retirement, according to ASIC’s MoneySmart website. Planning accordingly will be essential for Mount Isa area residents to ensure they are still able to get the pension upon which they rely.
The change in the law is affecting how superannuation benefits are assessed in regards to whether or not they have a deemed income amount attributed to them.
This deemed income amount could substantially reduce a person’s eligibility to an age pension on retirement.
There are ways to minimise the impact of this change for anyone over 55 years of age, but these strategies will be able to be made only before December 31, 2014.
Anyone over 55 should speak to an adviser to ensure their superannuation benefit will continue to be treated under the current rules and not under the new legislation. Pensioners who wait until after January 1, 2015, will find it will be too late.
At Yellow Brick Road Mount Isa, we believe everyone deserves to have a comfortable retirement and our team works with you to ensure you’re in the best possible position to achieve this goal.
Call us today on 47436342 to discuss your situation and to see whether you or your parents are impacted and the options available.
