RETA014.doc
This article briefly explains how asset levels affect the age pension. It uses a case study to explain how the assets test applies with rates as at 1 January 2017.
The basic rule for receiving an age or service pension is to ensure it goes to those people who need it. To determine how much each person is paid, pension recipients are subject to means testing on income and assets.
Two tests are applied and the one paying the lowest age pension is the one that is used. Many retirees pass the income test but fail the tougher assets test. This means they get a reduced pension or no pension at all.
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