No matter how seniors anticipate and prepare their savings and pension in their early years, their retirement income is usually insufficient to fund their daily living due to circumstances such as emergencies and inflation. And to resolve this, retirees need to look for pension boost strategies, especially now with the rising cost of living.
For the benefit of Australian seniors, Centrelink adjusted the maximum pension payment twice a year in both March and September. It increased by 2.1% which was effective last 20th of March. The increase was formulated using the rate of inflation and adjusted for changes in male average earnings.
Payment rates:
- For singles: $20.10 a fortnight increase with a total of $987.60 a fortnight
- For couples: a combined of $30.20 a fortnight increase, totalling $1488.80 a fortnight.
An equivalent of $1.43 per day for singles and $2.15 per day for couples.
Asset test limits
Centrelink also adjusted the asset test limits.
- For singles: A threshold increase by $6,750 to $599,750 for homeowners and $816,250 for non-homeowners.
- For couples: A combined threshold increase by $10,000 to $901,500 and $1,118,000 for non-homeowners.
Although these changes benefit pensioners, they still have to manage their funds and learn more ways to boost their pension.
Boost retirement contributions
Additional payment through salary packaging or total remuneration packaging can be done to boost your pension. The earlier you start paying, the more time your money has to grow. Also, whenever tax relief is considerate, it’s probable to give your savings a boost.
For employees, it is good to suggest that your company matches your contributions. Basically, that’s free money. However, it doesn’t mean that you’ll just rely on this type of contribution. You may also pay into a private pension on top of any work scheme.
For the self-employed, there is a so-called private scheme where you can pay your contribution on your own. Even though you’re not benefiting from employer contributions, you can still benefit from tax relief. Payments made into a pension can get tax relief. The value of tax relief that you get is depending on your tax bracket.
Again, you don’t have to limit yourself from personal pension, you can then top up your state pension voluntarily.
Always remember to check your pension forecast to see if you are on the right track.
ASAG Reverse Mortgage: Improving your income stream
If you think it’s too late for you to boost your pension, we have an option for you.
Our team accommodates Australian seniors who have limited sources of income. If you’re a homeowner and at least 60, you can use the equity in your home through our equity release facility, namely our reverse mortgage, to help amp your income stream.
The ASAG Reverse Mortgage is practical when you reach your retirement and in need to improve your finances. With our equity release solutions, you are allowed to access the wealth in your home without ongoing payments and selling. The funds can be used in any purpose relating to living the life that you’ve earned.
To know more about our reverse mortgage, our friendly team is happy to assist you. Our lines are open on 1300 002 724 and at info@asagfirst.com.au. Contact us now and together let’s achieve financial peace of mind.
You can also get started by using our tool below to assess your available equity.