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 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 retirees can invest up to $12,250 in a funeral bond and this investment it is not deemed to be part of their assets.
With a fixed price funeral plan there is no limit on the amount they can invest.
This ability to reduce assets by investing in a funeral bond or a fixed price funeral plan is a benefit that is not available with funeral insurance products.
An accountant or financial advisor will be able to provide information about options that will best suit individual needs.
Call Pre-planning Consultant Julie Spriggs at Kings Funerals on 5248 3444 to discuss funeral planning options.
