While Australia gets plaudits on the global stage for having a strong savings system in place, getting money out of an accumulation account and using it well when it’s time to draw down remains difficult. This is due to the complicated interaction between superannuation, the Age Pension, private savings, tax, and all the rules that connect all these different ‘moving parts’.
The application of the means test to your income or assets means the difference between a higher or lower pension payment – or whether you receive one at all. We know the very term ‘taper rates’ is off-putting, so today we explain how your entitlements may change according to these very important rates.
It’s no surprise that just over three-quarters of retirees own their own homes; traditionally Australians have had a love affair with home ownership. What is surprising is that the value of the home in retirement is so often understated or overlooked.