As we’ve reported previously, about one third of Australians are self-funded in retirement. It is largely for this cohort that a Commonwealth Seniors Health Card (CSHC) was introduced, helping those who will not receive an Age Pension to similar pharmaceutical, medical, energy and transport discounts as those who do. Yet only a small percentage of self-funded retirees have bothered to apply for this card. This is partly due to the detail required in the application process, but also possibly because too few retirees are aware of this entitlement. Again, conservatively, the concessions attached to this card can mount to $3,000 a year or more, so it is certainly worth investigating if you are a self-funded retiree. The important rule to remember, is that your assets are irrelevant when it comes to claiming this entitlement – entitlement is based purely on your income, which must be not more than $57,761 for singles and $92,416 combined for couples.
Retirement Essentials offers a ‘one-stop shop’ to help with your application for this valuable card. Click here to find out more.
With a spacious family home, a holiday home and large recreational vehicle, Tom and Sarah thought they would have no chance of qualifying for a CSHC. But as this card is based upon the income of self-funded retirees, and Tom and Sarah earn a total of $76,000 per annum from share and term deposit investments, they come in well below the $92,416 threshold for a CSHC.