"In regard to receiving Age Pension, would money in the bank, shares, and superannuation all be considered assets? If I add all three of these, it comes to over $270,000. Would I still be eligible to receive Age Pension in full?"
- Question from Robyn in Cranbourne, VIC
Top answer provided by:
Rachael Todman
Hi Robyn,
Thank you for your question.
Without knowing your full situation, I have made the following assumptions:
-You are single
-You are retired
-You are a homeowner.
-Your assessable assets, including home contents, cars are valued at market value of less than $10,000.
To answer your question firstly, we need to determine whether you would be assessed under the income test or the assets test.
Income Test:
As of 20 March 2023, a single pensioner can earn up to $190 per fortnight and still be eligible for the full single pension. Based on the information provided, your assets, including money in the bank, superannuation, and shares, would be deemed income at a rate of $190 per fortnight. Therefore, you would potentially be eligible for the full single pension. Once your income exceeds $190 per fortnight, the pension reduces by $0.50 for every additional dollar earned.
Asset Test:
Money in the bank, superannuation and shares are considered assets for Centrelink Age Pension purposes. However, your residential home is not included in the Age Pension asset test.
As of 20 March 2023, the full pension is available for homeowner singles whose assessable assets are under $280,000, and for single non-homeowners under $504,500.
Based on my assumptions as a single homeowner, your assessable assets amount to $280,000. Therefore, you would potentially be eligible for a full pension under the assets test. If your assessable assets exceed the lower threshold of $280,000, the pension reduces by $3 per fortnight for each $1,000 by which assessable assets exceed the lower threshold.
Eligibility
Given the test that produces the least amount of pension is the one used, you would qualify equally under the income and assets test and be eligible for a full pension based on both tests having the same result. Therefore, you would potentially be eligible for the full single pension of $1,064 per fortnight, including all supplements.
It is worth noting that if your assessable assets exceed the $280,000 threshold, careful consideration should be given to explore asset reduction strategies such as gifting and funeral bonds, as these strategies can help maximise your entitlement to the Age Pension.
Please note that these calculations are based on the information and assumptions provided. It's always recommended to seek advice from a financial adviser or consult with Centrelink directly to ensure accurate and up-to-date information regarding your specific circumstances.
Thank you for reaching out and I hope this helps!
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
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