The value of investment assets you can own while still qualifying for the age pension will increase on 20 September.
The changes reflect indexation adjustments, which are made twice per year, to keep up with inflation.
Let's take a look at what's changing.
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How much in assets can you own and still get the pension?
If you were born on or after 1 January 1957, you are eligible for the pension from age 67, whether you are retired or not.
The pension is subject to an assets test and an income test.
On 20 September, the guardrails on both tests change.
In this article, we're focusing on the rules for the assets test.
The first thing to know is your home is excluded from the pension assets test.
If you rent your home, you're also allowed to own a higher value of assets while still qualifying for the age pension.
Assessable assets under the test include superannuation, ASX shares, bonds, investment properties, and cash.
Under this next round of indexation changes, effective 20 September, only the upper thresholds for the assets test are changing.
Here are the details.
If you own your home
Single homeowners whose assets are worth less than $333,000 qualify for a full pension.
Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.
Couple homeowners whose assets are worth less than $499,000 qualify for a full pension.
Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will qualify for a part-payment.
If you rent your home
Single renters whose assets are worth less than $600,000 qualify for the full payment.
Single renters who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will qualify for a part-payment.
Couple renters whose assets are worth less than $766,000 qualify for the full payment.
Couple renters who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will qualify for a part-pension.
How much is the age pension?
Pension payments will increase on 20 September to reflect inflation.
Single pensioners will get an extra $36.80 per fortnight from 20 September.
That will raise the full pension payment up to $1,237.70 per fortnight.
Couples will get an extra $27.80 per partner, per fortnight.
That will bump up the full pension to $933 per partner, per fortnight.
Even if your assets are worth very close to the upper limit for a part-pension, it is still worth applying for social security.
You may only get a few dollars in pension, but you'll receive the full benefit of the Australian Pensioner Concession Card (PCC).
The PCC can save you thousands of dollars every year on a broad range of living expenses in retirement.
