Here Is A Little-Known Secret that Can Help You receive more of your aged pension by optimising your Assets & Income.

Yes Centrelink has changed the rules on defining your assets & income on 1^st July.

The tests reduce the measurable value of lifetime income streams by 40% to the age of 84 & from then to 30% of the lifetime asset & income.

So if you are a couple owning your home & are in any of these 4 categories then it could be very worthwhile to model & optimise your financial position.

1. If you own your home you will be able to hold total assessable assets (deemed) of up to $286,185 and still receive the full rate of pension.

    

2. If your financial assets are between $286,185 and $423,500, the income test would determine your pension entitlement and income test friendly strategies may assist in enhancing your pension.

    

3. Once assets reach $423,500, your pension will be determined using the assets test and assets test friendly strategies may assist in enhancing your pension.

    

4. Where assets exceed $860,000 your Age Pension is reduced to nil.

    

    

It means if you were to reduce your assessable assets by $1,000 your Age Pension entitlement will increase by $78 p.a.

The assessment of your assets under these new rules for lifetime income streams discounts your value by 40% or to 60% of their value to the age of 84 & then to 30% thereafter.

As an example if you invest $100,000 in lifetime income stream assessable assets then you immediately obtain a discount of $40,000 (where just 60% or $60,000 is assessable)

So yes there are different solutions depending on which category you are in.

If you a single or not a homeowner then different limits may have viable solutions for you.

It is certainly worth the effort to optimise your financial position as remaining as you are could be very costly if you bat on for a long innings.

If you could have more pension for some years then that means you have more options.

And one more benefit for you is that the income rate is guaranteed for life & it is often higher that for your term deposits.

As I was researching only yesterday for a client I noticed that short term rates for a year are higher than for the two year rate.

This is called a yield inversion as you would expect to be paid more if you loan the bank for longer.

It has in the past been an indicator of a recession & this would mean even lower rates going forward.

So lock these guaranteed rates today for yourself.

If you one of the 24% don't receive any pension then if this solution isn't relevant then more income from other options on our Approved List maybe very suitable for you.

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PS. this is very PC General advice to help you be aware of what is available if you make the move & are suitable.