YOURLifeChoices subscriber, Tom, would like to know which income streams are classed as exempt assets?
I purchased an income stream product eight years ago and would like to know will it be considered an asset when I apply for the Age Pension later this year?
A. Provided by Centrelink
There are a number of factors considered when determining how an income stream affects your Centrelink payments. Income streams may be deemed asset test exempt if they are assessed as:
· Defined benefit income streams that qualify for a 100% exemption from the assets test
· Complying income streams - purchased income streams with defined characteristics
In addition, lifetime products (purchased at any age) and life expectancy products (purchased on or after age pension age) which have all of the required characteristics and are purchased prior to 20 September 2004 are also 100% exempt from the assets test, and those purchased between 20/9/94 and 19/9/97 are 50% exempt from the assets test.
Information about how income streams affect your Centrelink payments can be accessed via the link below.
It may be a good idea to discuss your circumstances with a Centrelink Financial Information Service officer on 13 2300.
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