D-Day for pensioners is fast approaching. Act now to ensure you don’t miss out on current Social Security support entitlements.
I’m writing to let you know about some important changes to eligibility rules for Social Security entitlements that could affect your ability to access future, or continue to receive current levels of, Social Security support payments such as the Age Pension.
It’s important you are aware of these changes, as receiving your Centrelink entitlements could help your hard-earned savings last longer, providing a significant boost to your quality of lifestyle in retirement.
What are the new rules?
Social Security has generally given favourable treatment to account-based pensions when assessing your eligibility for an income support payment such as the Age Pension and the Disability Support Pension.
As a result, many people with account-based pensions are currently able to receive valuable Social security support, topping up their pension account payments to help their personal savings last longer.
This is set to change from 1 January 2015, as the same ‘deeming’ rules that apply to other financial investments will also apply to newly-commenced account-based pensions and those account based pensioners who were not in receipt of an income support payment. These changes may mean that fewer people will be eligible to receive Government assistance and others may receive less.
Also should you make certain changes that require the commencement of new account based pension after this date, the new rules will apply.
What actions should you consider?
As you already have an account-based pension in place and, are in receipt of income support payments, the new rules will not apply unless you start a new account based pension or cease to receive an income support payment from 1 January 2015. You may however, want to review your situation to determine if:
· your financial position can be improved (some options to achieve this will no longer be available from 1 January 2015); or
· you are better off under the existing assessment or post 1 January 2015 deeming rules.
To make an appointment to discuss your situation, please phone me on (07) 5475 0800.
Also, if you know others who may be affected by these important changes, I would be happy to assist them in a review of their situation. They can phone me on the above number to make an appointment.