If you are an asset tested pensioner the following changes will apply to your pension entitlement from 1 January 2017.
The assets test free areas will increase to:
• $250,000 for a single homeowner
• $375,000 for a homeowner couple
• $450,000 for a single non-homeowner
• $575,000 for a non-homeowner couple.
The rate at which your pension will be reduced will increase from $1.50 to $3.00 per fortnight for every $1,000 above the relative assets test free area.
An investment in a funeral bond, such as Sureplan Gold, is exempt from the Income and Assets Test providing no more than two funeral funding arrangements are held and together they do not exceed the maximum eligible investment threshold (currently $12,250).
Therefore for those affected, an investment in Sureplan Gold for the maximum allowable amount of $12,250 may increase a pension entitlement by $955.50 per year. For a couple, each partner can invest $12,250 which may result in a combined increase in pension of $1,911 per annum or $73.50 per fortnight.
It is recommended you obtain independent financial advice before investing in Sureplan Gold.
For more information contact our friendly member services staff on 1800 817 015 or email us on info@sureplan.com.au.