There has been much talk about the superannuation changes that are now awaiting Royal Assent to be passed into law.
A lot of the talk has focussed on the fact that after age 60 all superannuation withdawals are tax free.
However one aspect of the changes that have been overlooked just a little is that of the change to the Age Pension assets test. From September this year a homeowning couple will be able to have up to $780,000 in assets, and still receive a part age pension. At the moment that cuts out at just over $500,000 of assets.
This is potentially a positive for:
- Those people who are retired with less than $780,000 in assets who will start to receive some age pension
- People thinking about ways of funding their upcoming retirement
For this last group, and if they are over 55 now, there are special income streams that they could start - even if they are working - to half the value of the assets in these income stream. The most common of these income streams is a 'Term Allocated Pension'.
Have a look into this as a matter of urgency - it could be a bit help to you.