age pension advisor Archives - Financial Planning QLD

When is a law not a law?

When governments propose changes to laws, many people mistakenly believe that law is already in place however, the path from proposal to law is not as straight-forward as you might think. When an unpopular or contentious bill is announced, perhaps because of the attention it receives from the media, everyday Australians are sometimes led to believe the declaration heralds a done deal, but this is usually far from the truth. Here’s a good example As part of the 2014 Federal…

Don’t lose your home! Alternative ways to pay for aged care

The question that we mostly ask when it comes to aged care is, how do I pay for aged care? Anyone who has helped an elderly relative make the move into aged care knows that it can be a traumatic experience. It involves a move from the familiar – a home that a loved one may have lived in for decades – to the unfamiliar, a care facility with many residents and staff. The costs The biggest fee, the accommodation…

Australia Centrelink pension plan financial advice

How does Australia’s pension plan stack up?

One in six people will be over 65 years old by 2050. With the world’s population ageing quickly, it is natural to think about how pension systems around the world will cope, particularly in Australia. Fortunately, Australia’s three-component retirement income system means our age pension system is well-equipped to support older Australians now and well into the future. Is Australia’s age pension adequate for retirement? Comparisons of age pensions around the world are generally made based on three key factors…

Unlocking the Potential of Age Pension and Superannuation Benefits

The Australian Aged Pension scheme provides a wonderful safety net for those with limited assets in retirement, although many remain confused by how their age pension entitlements differ from so called superannuation income streams. So let’s talk about age pension and superannuation benefits. Age pension income and asset tests The Federal Government provides an income for all Australians who reach pension paying age, currently set at age 67, who can prove they are an Australian resident and can also pass…

Financial advice related to superannuation

Low income earners: Six super hacks to retire richer

While it’s easy to be discouraged by superannuation and fear you will never have enough money saved to stop working, remember even a modest superannuation balance can make a big difference in retirement. For every $100,000 saved in superannuation, you can expect these funds to generate a return of 6%, or $6,000, a year. When this is paid out as a pension, it equates to $500 a month tax-free. Of course, this is doubled if both you and your partner…

The tips, traps and costs of retirement villages

With an aging population, an increasing number of Australians are opting to live in retirement villages. While pitched at the ‘over-55s’, the average age of entry is 74, and average age of residents is 81. Depending on the retirement villages, attractions include having home maintenance issues taken care of, more social contact, access to recreational facilities and on call assistance in case of medical emergency. Moving to a retirement village can also free up capital to support living costs in…

Assets test income test age pension family home financial advisor tips

How the family home can affect aged care fees

Knowing how to reduce assets for aged care is an important financial consideration today. Residential aged care is playing an increasing role in helping many older Australians enjoy comfortable and carefree lives. However, one of the tasks for anyone assisting an elderly relative with the move into aged care is to investigate the various fees and charges, some of which are subject to both assets and income means tests. As the family home is often the largest asset and can…

Aged care funding strategy for Australian retirement

What is your aged care funding strategy?

We’re an ageing population; the media keeps reminding us, as does the government, but are we prepared for what this means? As a society? As individuals? One thing’s for sure – it’s something we cannot ignore and that we all need an aged care funding strategy. According to the Australian Bureau of Statistics, in 2018 over 3.9 million Australians were aged 65 and over. Consider for a moment: this figure shows those people contemplating aged care for elderly family members…

A guide to planning for aged care

The latest Inter-generational Report tells us that Australians aged 65 years and over accounted for 14% of the population – and that figure is rising. Whether you’re concerned about your future self or a loved one, aged care is an issue most of us will have to manage at some time in our lives. So it pays to begin planning for aged care as soon as you can. At the time of Federation, Australians at birth had an average life expectancy…

Financial advice for retired couples on age pension assets test

To gift or not to gift? What about your pension?

With Australia’s age pension being subject to an assets test and income test, a simple way for part-pensioners to increase their pension payments is to give away some assets. Not surprisingly the government is on to such an obvious strategy. It’s called gifting, and while it is perfectly legal for you to give away whatever you want whenever you want, if you exceed the relevant limits, Centrelink will continue to assess, what it calls “deprived assets”, for five years. The…