Advice key to rule changes
Australians who want to take advantage of new Centrelink rules that will allow them to both work and receive the age pension will need to ensure they get the right advice, according to ClearView Retirement Solutions technical manager Dante De Gori.
Pointing to the fact that the rule changes will take effect from next week, De Gori said utilising the new arrangements would be a matter of planning and knowing the rules.
He said those who wanted to take advantage of the new regime either now or in the future would need to get the right advice to ensure they did not lose part of their entitlements or otherwise adversely affect their eligibility.
“Many people mistakenly believe that the age pension is not available until they retire,” De Gori said. “However, that is not always the case, especially under new income test provisions of the rules.”
He said many people as they got older dropped their work hours considerably, and as a result of their age combined with their level of work, income might actually entitle them to a part age pension.
De Gori said planning ahead and structuring finances appropriately could help ensure a person did not miss out on their entitlements.
AUTHOR
Mike Taylor
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
