Maximise your Aged Care pension!

TL;DR

Learn tips and strategies to recover reduced Centrelink age pension payments due to rising asset values.

Transcript

g'day and welcome to this week's video my name is ashley roman i'm a financial advisor with consortium private wealth in today's video we're going to be looking at strategies in which you can maximize uh your centrelink age pension payments a number of clients in recent times have notified you know our business in particular that their signaling pa... Read More

Key Insights

• 🤕 Rising asset values can lead to reduced Centrelink age pension payments.
• 🏆 The Centrelink age pension is means tested based on income and assets, with thresholds for both tests.
• 😨 Strategies like renovating the home, gifting, investing in funeral bonds, and funding aged care deposits can help increase pension payments.

Questions & Answers

Q: How are Centrelink age pension payments affected by rising asset values?

Rising asset values, particularly in superannuation funds, can result in a decrease in Centrelink pension payments as they are means tested based on asset values.

Q: How does the assets test affect Centrelink age pension payments?

If your assets exceed certain thresholds, your pension payments will decrease by $3 per fortnight for every $1,000 over the thresholds.

Q: What is the impact of the income test on Centrelink age pension payments?

Once your income exceeds a certain amount, your pension payments will decrease by 50 cents in the dollar.

Q: How can renovating your home help increase Centrelink age pension payments?

Investing in renovations for your home can help reduce the balance of your cash accounts, which may have a positive impact on your pension payments.

Q: Can gifting money affect Centrelink age pension payments?

You are allowed to gift up to $10,000 per financial year, three times over a five-year period, without it affecting your pension. Gifting can potentially increase pension payments.

Q: What is a funeral bonded investment and how can it impact Centrelink age pension payments?

A funeral bonded investment allows you to set aside funds for your future funeral costs. These funds are not included in Centrelink means testing, which can help reduce other accessible assets and potentially increase pension payments.

Q: Does funding a lump sum deposit for aged care affect Centrelink age pension payments?

If you are in aged care and rely on the pension to support your ongoing fees, funding a lump sum deposit can be exempted from the means testing and may not affect your pension payments.

Summary & Key Takeaways

• Many clients have seen a decrease in their Centrelink pension payments due to the rising value of assets, such as superannuation funds.

• The Centrelink age pension is means tested based on income and assets. For every $1,000 over the thresholds, pension payments will decrease by $3 per fortnight for the assets test and 50 cents in the dollar for the income test.

• Strategies such as renovating your home, gifting, investing in funeral bonds, and funding lump sum deposits for aged care costs can help increase pension payments.