Most people give up after being knocked back after applying for the Age Pension. But this story about one of our clients demonstrates the significant financial impact of understanding the intricacies of the eligibility requirements.
If this couple had accepted the initial Services Australia assessment and given up, they would have lost out on almost $100,000 of Age Pension entitlements over five years and missed out on pharmaceutical, rego and utility discounts.
Numbers/background
- Couple: husband 68, wife 62.
- Value of home: $1.2million on 65 acres
- Superannuation: $700,000 combined
- Cash in the bank: $80,000
- Drawing an income of $52,000 p/a from superannuation to meet living costs
Frustrations
- The husband had been knocked back for the Age Pension and they weren’t sure why.
- They were spending a significant amount of money each month on medications without any government concessions.
- A previous financial adviser had not investigated further on their behalf.
How we helped
- After our initial meeting with the couple, we identified they were knocked back from receiving the Age Pension because they lived on rural property and the size of the land was over 2 hectares (5 acres).
- We set-up a meeting with a Services Australia Financial Information Services (FIS) Officer and attended a joint meeting with the husband.
- Through requesting a subjective test, we were able to get the property exempt from the assessment.
- We restructured their superannuation assets.
- We applied for the low-income Health Care Card for the wife who is currently under the Age Pension age.
What success looks like for them
- The husband receives the full rate of Couples Age Pension (approximately $20,000 p/a) and qualifies for the Pensioner Concession Card.
- They don’t need to draw down as much money from their super savings to meet their living expenses – their money won’t run out as quickly.
- The wife qualifies for the Low Income Health Care Card
- They save hundreds of dollars each month through discounts on their medication, rates, registration, and utilities.
As you can see, the upside for this couple engaging Denaro Link to look further into their situation has resulted in more money in their pocket to fund their retirement and combat the ever-increasing cost of living.
If Services Australia has knocked you back from receiving the Age Pension or concession cards or you need guidance and support dealing with Services Australia, organise a free chat today.
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