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You’re most likely here after searching Google for answers on different questions about your Age Pension.
In this article, we learn how much you can have in the bank before your pension is reduced. In addition, I have also answered dozens of questions from visitors in the comments section, regarding a range of scenarios and the impact on the pension.
How much can I have in the bank before it affects my pension?
Centrelink use an asset and income test when working out your rate of pension. For the purposes of the income test, the Government assumes that you will be earning a certain rate of return from the financial investments that you hold, regardless of the actual earning rate.
Deeming (assumed) Rate Single Pensioner Pensioner Couple
2.00% First $48,000 First $79,600
3.50% $48,000+ $79,600+
SOURCE: Department of Human Services, deeming rates effective from 1 July 2014
A single pensioner can have financial investments (e.g. bank account, shares) of $139,428 and still receive a full pension. This assumes the only source of income is from financial investments and that the total assets (eg. cars, personal belongings) are below the relevant threshold under the assets test ($202,000 for a homeowner).
How was this calculated?
$139,428 in financial investments:
$ 48,000 x 2.0% = $960
$ 91,428 x 3.5% = $3,200
Deemed income = $4,160
A pensioner couple can have financial investments of $245,086 and receive a full pension. Again, assuming the only source of income is from financial investments and total assets were below the maximum allowed under the assets test for a full pension ($286,500 for a homeowner).
As mentioned, the above figures assume your only source of income is from financial investments. If you have other sources of income, such as overseas pensions; these don’t fall under the deeming rules. This extra income will reduce the amount that you can have in the bank before it starts to affect your pension.
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