Forman Financial Services

Aged Care Strategy – Superannuation – Drawing the minimum pension payments from a grandfathered account based pension

This can benefit people who:

  • are receiving a social security payment and residing in aged care, who have a grandfathered account based pension

Potential Benefits:

  • May increase entitlement to pensions or allowances under the income test
  • May reduce aged care fees due to reduction in assessable income

Things to be aware of:

  • person requiring amounts exceeding the minimum have a choice between making commutations or increasing pension payments. Need to compare:
  • Commutations: not included in assessable income however cause permanent reduction in deductible amount
  • Increasing pension payments: included in assessable income, however timing increased payments towards end of financial year, minimises amount assessable. Important to provide a new Centrelink schedule for the following financial year ASAP

Aged Care & Home Care can seem complex.  We have a special offer for general advice for $225.00.
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