You will need to pass two forms of assessment before The Age Pension is granted. One is the incomes test, the other the assets test. There is little leeway in reporting income, which is generally wages, salary, dividends or rent as well as income deemed by Centrelink. Assets, however, can often be misreported – in many cases over reported – as it is unclear how to value your different possessions. What is important is to ensure that all valuations of your assets are up-to-date at all times. Centrelink will not come asking if your personal assets have devalued. So those assets which are listed and relevant to your current entitlements may change in value over time. This is particularly pertinent when it comes to personal assets such as cars, boats, caravans and household contents, as they depreciate. In many cases those who did not qualify for an Age Pension – even a part one – may find that they do qualify over time. And, of course, with this pension entitlement comes the added bonus of the Pension Concession Card. You can check for yourself the impact asset valuation has on your entitlements on our free eligibility calculator.
If you would like assistance to better understand the market value of your declared assets, why not book a consultation with one of our friendly team who can help with all aspects of Age Pension assessment?
Annie and Colin recently spent $12,000 on an extended road trip from Rockhampton, Qld, to their extended family in Victor Harbour, SA. As well as enjoying two months of summer sun, beaches and family catchups, they have now qualified for an extra $18 per fortnight ($468 per annum) as Colin went to the trouble of informing Centrelink that their term deposit had decreased from $60,000 to $48,000.
The first step to maximising your entitlements is to check you are getting all of yours. You can get started by using our free calculator.
This article is provided by Retirement Essentials Representative Number: 001260855. We are an authorised representative of SuperEd Pty Ltd ABN 88 118 480 907 AFSL #468859. This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read the relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.