Pension increase and ways to maximise your retirement income

Pension increase from 20 March and ways to maximise your retirement income 💰🧐

This week’s pension increase has provided many Australians with an additional $20 per fortnight, highlighting the importance of maximising pensions and entitlements.

The 1.78% rise, effective from March 20, falls below the increases seen during peak inflation periods, underscoring the need to make the most of available benefits.

The total age pension for singles will rise by $19.60 to $1116.30 per fortnight, while couples will see an increase of $14.70 to $841.40 each.

Other payments, such as JobSeeker, will also rise by $13.50 to $772.70 per fortnight, along with various rent assistance amounts depending on family circumstances.

Fortnightly payments update from 20 March 2024

Financial experts emphasise the importance of seniors claiming all entitlements, especially during times of increased household expenses. Many retirees are receiving a part-pension, and many part-pensioners could potentially get more in the form of extra income and government bonuses and benefits

There are various strategies to improve Centrelink benefits, such as prepaid funeral bonds and gifting to family members. Additionally, using annuities can help reduce assessable assets, potentially leading to higher pension payments.

There are many things you can do to improve your Centrelink. For example, prepaid funeral bonds of up to $15,000 don’t count towards the pension asset test, while giving money away to children and grandchildren also removes it from Centrelink testing. However, the gifting limit for singles and couples is $10,000 in one year and $30,000 over five financial years.

As living costs rise, it is crucial for seniors to remain vigilant and take advantage of all available entitlements and discounts. Services Australia says a pensioner concession card can deliver cheaper medicine, bulk billed doctor visits, help with hearing services, a bigger refund under the Medicare Safety Net, and discounts to redirect mail.

State and local governments may also offer discounts on utility bills, property and water rates, transport fares and motor vehicle registrations, although this varies around the nation.

“When the pension goes up there’s a few things that will happen,” says Later Life Advice founder Brendan Ryan.

“The upper limit of qualifying for a pension gets that little bit higher, and people who may not have qualified for the pension do now,” he said. This new asset limit is $1.01m for a homeowner couple and $674,000 for a single.

To maximise pension eligibility, individuals should accurately value their assets and consider using second-hand values for items like cars. Bringing forward planned expenses can also help reduce assessable assets and increase pension entitlements.

“Don’t go thinking your car is worth more than it is – that serves to give you less pension.”

Pension rises also delivered more money through the government’s home equity access scheme, Mr Ryan said.

Overall, even small steps to improve financial wellbeing can make a significant difference to disposable income, ensuring retirees make the most of their retirement years.

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