How an Annuity Can Boost Your Age Pension
- Jarrod Boyd
What if I told you that certain annuities can also boost your Age Pension?
How Does an Annuity Work?
An annuity provides guaranteed payments over a set period, or even for the rest of your life. You invest a lump sum—either from your super or savings—and in return, you receive regular, predictable income.
This can help you plan your retirement with confidence, regardless of how financial markets perform.
How an Annuity Can Boost Your Age Pension
Since 1 July 2019, the government changed the Age Pension means testing rules to give lifetime annuities favorable treatment.
Here’s how it works:
Assets Test: Only 60% of the purchase price of your annuity is counted as an asset until you turn 84 (with a minimum of 5 years). After that, only 30% is counted.
If your Age Pension is being reduced due to the assets test, investing in a lifetime annuity could immediately improve your eligibility for the pension. This means you get both a stable income from your annuity and potentially higher pension payments.
You can customize your annuity to suit your retirement needs:
- Choose between fixed-term or lifetime options.
- Opt for indexed payments to keep up with inflation.
- Decide on your payment frequency—monthly, quarterly, or annually.
- Nominate a beneficiary or reversionary to continue receiving payments if something happens to you.
Why Consider an Annuity?
- Boost Your Age Pension: Favorable means test treatment for lifetime annuities.
- Reliable Income: Guaranteed payments, even when the markets are volatile.
- Peace of Mind: You know exactly what income you’ll receive, helping you budget with certainty.
How Can We Assist You Today?
If you’re curious about how an annuity could work in your retirement strategy—or how it can potentially increase your Age Pension—let’s chat. At Blue Financial Ballarat, we specialize in helping individuals effectively manage their wealth, optimize superannuation growth, and prepare for a rewarding retirement. With a trusted reputation and a long-standing presence in Ballarat, we are dedicated to helping you achieve lasting financial peace of mind. Partner with us to confidently navigate your financial future.
Let us help you reach your financial goals today!
General Advice Warning: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
