Changes to age pension to come 1st January, 2017
If you are retired or approaching retirement, in less than 4 months’ Government changes to the Age Pension could have an impact on your retirement plans. Come 1 January 2017, some people will benefit from the changes and others will be worse off.
The Government estimates that this measure will see 91,000 part-pensioners lose their Age Pension completely while another 235,000 part-pensioners will see their age pension reduced.
The potential impact of these changes is significant and could see pensioners lose thousands of dollars each year. For example, a couple who own their own home with assessable assets of:
$500,000 will lose $1,892 pa;
$700,000 will lose $9,692 pa; and
$900,000 will lose $11,465 pa.
For single clients it is the same story, just with different numbers.
During October, Centrelink will be writing to pensioners who will be affected as at 1 January 2017. Don’t wait, see if you will be affected by the changes, contact a MW Lomax advisor in Melbourne on 03 9866 5888 or Sydney on 02 8404 6700, and take action now to reduce the impact and enhance your overall cash flow.