Age Pension – Have You Checked Lately?
Released: 10 Jun 2010
In September 2007, John Howard’s parting gift was a significant increase to the Asset Test limits for Age Pension. To provide some context, pre-September 2007, if a couple who owned their home had more than $531,000 in other assets (real estate other than the home, financial investments, motor vehicles etc) they would have no entitlement to Age Pension.
As at 20th March 2010, that same couple can have $957,500 in assets other than their home and potentially still be eligible for an Age Pension.
Let me say that again! A couple who own their home can have pretty much $1 million in other assets, and potentially qualify for an Age Pension!
These changes were widely publicised at the time, in fact the Government estimated that an additional 100,000 Australians would become eligible for Age Pension as a result.
While many older Australians applied for, and became, Age Pensioners, I am still surprised to see a few people a month come through our doors that are now eligible that aren’t aware.
So why are many older Australians who are entitled to Age Pension not receiving their entitlement?
The answer perhaps lies with the date of the change - September 2007. In September 2007, the Australian Sharemarket was setting record highs (the ASX All Ordinaries passed through 6,500 points), and the words “sub” and “prime” were rarely mentioned in the same sentence, let alone joined to make one word! People’s financial assets were perhaps quite substantial and well in excess of even the new significantly improved Asset Test limits.
Almost 3 years later, the Global Financial Crisis now has a recognisable acronym, the ASX All Ordinaries sit at 4,400 and some people’s financial assets have reduced in value.
Why not take some time to revisit your situation and explore your entitlements. With over 12 years working at Centrelink, Scott Keeley can review your assets and assist you to determine whether or not you may be eligible for any forms of assistance from Centrelink. And don't be afraid of the paperwork, he can help you with that too.....
The information provided above is for general information purposes only and has been prepared without consideration of the relevant personal circumstances of any individual investor. You should consult with your financial adviser before acting on the information.