Government pension changes have come into effect, with the first payments under the new assets test now due.
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The Age Pension assets test limit dropped, on January 1, from $793,750 to $542,500 for singles and from about $1.1 million to $816,000 for couples.
Industry Super Australia modelling has predicted that, in ten years, about 50 per cent of new retirees will be adversley affected by the changes.
Industry Super Australia public affairs manager Sarah Saunders said the new policy was unrealistic in a low interest environment.
“The policy assumes that retirees can earn 7.8 per cent on the top portion of their savings,” she said.
“If someone with modest savings on the assets test threshold ends up living off less than the full Age Pension, there is no incentive to save.
“Faced with sudden changes to retirement income policy, Australians working to long-established plans can be forgiven for feeling under attack.”
The changes may also affect those on the carer payment, disability support pension, widow B pension or wife pension.