Changes to the pension asset test will ripple through the economy
Written on the 21 November 2016On January 1, 2017 the age pension will undergo significant changes.
Changes to the assets test, which determines who can receive a pension and how much, could see 166,000 pensioners receive an increase in their entitlements.But many people will also have their pensions reduced and others will become ineligible entirely.
These headline numbers are just the start, however.Changes to the pension will affect the way people plan and behave incentivising certain types of homeownership and debt, potentially impacting younger generations.
What are the asset test changes?The Government decides who is eligible to receive the aged pension, and how much they are entitled to, by looking at their assets and income.
From January 1, the maximum assets you can own to receive a full pension is being increased, for homeowners and non-homeowners, singles and couples.
This will allow a larger group of people to claim a full pension.
Click HERE for the asset thresholds.
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