Beth has been hit with a large insurance bill and will have to withdraw from her savings to cover it, but she wants to know if the lump-sum will affect her Age Pension.
As a couple, we are on an Age Pension, and to meet our annual combined car/farm and house insurance, I need to draw out some funds from our savings account. I want to take the interest accrued of $4000 dollars, but would like to know if withdrawing this amount will affect our Age Pension?
A. As you are already being deemed on the interest earned on this account, any withdrawal should not affect your Age Pension. Indeed, once you advise Centrelink that your account balance has reduced, you may find that you receive a little extra in your Age Pension payment. However, should you use the money to purchase an asset, such as a car, then this asset would then be included under the asset test.
You can view the current asset test limits here.
You should advise Centrelink of any changes to your financial position as it will need to adjust the deeming of interest accordingly.
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