Changes to part pension to affect 340,000 retirees
Changes to the part pension announced in Tuesday's Federal Budget will see 90,000 retirees lose their part pension entirely, according to XpressSuper.
The increases to social security assets test will affect self-managed super fund (SMSF) trustees and members who will need new strategies to achieve their retirement goals, the SMSF administrator said.
"When you realise that an estimated 90,000 retirees will lose their part pension entirely, and nearly 250,000 will see their part pensions cut, then the enormity of the change for many SMSF trustees and members is evident," XpressSuper and SuperGuardian chief executive, Olivia Long, said.
"The assets-free threshold for homeowners rises to $250,000 for singles and $375,000 for couples from 2017, and the tapering rate rises from $150 to $300 per $1000 over the assets threshold."
Long said long-term retiree goals of preserving capital and generating income should remain but professional advice will be needed as the new policies will change how the goals are reached.
"Avoid any knee-jerk reactions such as moving their wealth from means-tested assets to non means-tested assets," she said.
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