Your client does not currently receive the Age Pension because their assets exceed the assets test cut-off thresholds. Clients with assessable assets just above the cut-off thresholds can become entitled to the Age Pension from strategies that bring them below these thresholds. For example, incorporating Challenger’s Guaranteed Annuity Liquid Lifetime (Flexible) into a client’s retirement income portfolio can help reduce their assessable assets.
Clients who are just above the assets test threshold could benefit from strategies which reduce assessable assets for social security purposes. Every $1,000 a client reduces in assessable assets in this zone could increase their Age Pension by $3 per fortnight, or $78 p.a.
The numbers are rounded for illustrative purposes and based on rates and thresholds of 20 September 2020. For exact figures please view the Strategy Zones chart. Assumes all assets are financial assets and there is no other income.