4 strategies to maximise your Age Pension

TL;DR

Learn four strategies to lower assets and increase eligibility for the age pension.

Transcript

foreign and welcome to this week's video my name is Robert Gowdy and this week I thought I'd put together four strategies to help reduce the assets test um to help people be eligible for more age pension once we get over certain thresholds which is different for single homeowners or single non-home owners compared to couples homeowner non-homers ho... Read More

Key Insights

• 🤕 Funeral bonds valued at $28,000 (for a couple) can be exempted from Centrelink calculations, increasing age pension eligibility.
• 🤕 Gifting is limited to $10,000 per year or $30,000 over five years to prevent excessive asset reduction for age pension qualification.
• 🤕 Compliant lifetime income streams offer a 40% exemption on the capital value used, boosting age pension eligibility.

Questions & Answers

Q: How can funeral bonds be used to reduce the assets test?

By purchasing funeral bonds valued at $14,000 each for both spouses, the total $28,000 is exempt from Centrelink calculations, increasing age pension eligibility. This strategy is useful but restricts the use of the funds for funeral expenses only.

Q: What are the gifting limits for increasing age pension eligibility?

Single individuals or couples can gift up to $10,000 per financial year or $30,000 over five years. These limits prevent individuals from excessively reducing their assets to qualify for the age pension.

Q: How do compliant lifetime income streams contribute to a higher age pension?

By investing $100,000 into a compliant annuity, individuals receive a healthy income while exempting 40% of the capital value from the asset test. This strategy boosts age pension eligibility.

Q: How does transferring assets to a younger spouse's superannuation account help?

Transferring assets to a spouse who is not of age pension age and putting the funds into an accumulation superannuation account can temporarily increase eligibility. This strategy extends the longevity of retirement savings.

Summary & Key Takeaways

• Implementing funeral bonds can exempt up to $28,000 from Centrelink calculations, resulting in a higher age pension.

• Gifting limits of $10,000 per year or $30,000 over five years prevent individuals from reducing assets significantly to qualify for the age pension.

• Compliant lifetime income streams offer a 40% exemption on the capital value used to purchase the annuity, contributing to a higher age pension.