Will my Age Pension reduce?

The changes to Age Pension asset thresholds that will take place from 1 January 2017 have Kay concerned that her Age Pension payment will reduce so we clarify what they actually mean.

Q. Kay

I am very confused about changes to the Age Pension for singles without superannuation. I have been on the Age Pension since 2005. Am I likely to have my pension reduced?

Can you also clarify the rental allowance for retirement villages?

The changes to the Age Pension asset thresholds and associated taper rate, which will happen on 1 January 2017, may result in a reduction to your Age Pension payment. However, if you are single, you would need to have assessable assets over $250,000 for your Age Pension to be reduced. In fact, if your assets are limited, you may even find that you will qualify for a full Age Pension, if you don’t already. The asset threshold for a full Age Pension for singles is currently $205,500. This means that from 1 January 2017, you can have a considerable amount more before your Age Pension is reduced under the asset test.

In regards to rent allowance, you can receive this payment towards service and maintenance fees as long as you are paying more than the minimum eligible amount of rent.

You can view the current thresholds here.

Written by Debbie McTaggart

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