From 1 January 2017, new rules will apply for the Centrelink Age Pension Assets test that will affect thousands of current pension holders.
For people eligible for a part pension, the pension rate currently reduces by $1.50 per fortnight for every $1000 of assets owned over the full pension limit. From 1 January 2017, the pension will be reduced by $3 per fortnight for every $1000 of assets over the limit.
One strategy to reduce your assets is to invest in a funeral bond or a fixed price funeral plan, which can both be organised by Kings Funerals with all funds invested with a friendly society. Currently, you can invest up to $12,500 in a funeral bond and this investment is not deemed to be part of your assets. With a fixed price funeral plan there is no limit on the amount you can invest.
This ability to reduce your assets by investing in a funeral bond or a fixed price funeral plan is a benefit that is not available with funeral insurance products.
Your accountant or financial advisor will be able to provide information about options that will best suit your individual needs.
Call Julie Spriggs, pre-planning consultant at Kings Funerals on 5248 3444 to discuss funeral planning options.
