Are You Leaving Money on the Table? You Might Not Even Know It
If you’re on the Age Pension, or think you might be entitled to it, there’s something that’s recently changed that’s worth being aware of.
It’s called deeming. And unless you’ve had a proper review recently, there’s a good chance it could be quietly affecting both your pension and, in some cases, aged care fees.
In simple terms, the government doesn’t look at what your investments actually earn. Instead, it applies an assumed rate of return and treats that as your income when working out your entitlements. Those deeming rates were increased again on March 20th.
For some people, that means a slight reduction in pension payments. For others, it can also influence how aged care costs are assessed. Not always dramatic on its own, but over time it can add up.
The people most often affected aren’t those with very little, and not necessarily those with significant wealth either — it’s typically those in the middle. The people here in the Redlands who’ve worked hard, saved well, built up some super or investments, and are now operating within a system that doesn’t always reward that position as clearly as you might expect.
If any of this sounds familiar, it may be worth having a closer look at how your situation is being assessed. If you have additional questions, I’d love to help. And if there’s something you’d like me to cover in a future edition of ‘Insights from Troy,’ feel free to reach out. Sometimes a quick conversation can make a meaningful difference.
Got a retirement question for Troy?
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