Category: Retirement planning

If you’re retired or approaching retirement with a meaningful portfolio of shares, managed funds, term deposits or other private investments, changes to two key age pension thresholds from 1 July 2026 may be worth your attention, particularly if you were told in the past that your assets or income put you just outside the pension system altogether.

What’s Changed

The assets test thresholds have increased from 1 July 2026, including both the upper cut-off limits and the asset-free areas that determine when the age pension starts to reduce.

The upper limits, the point at which pension entitlement cuts out completely, have increased as follows:

Assets Test Cut-off: Non-homeowners

• Single: $1,000,500 (up from $980,000)
• Couple (combined): $1,369,500 (up from $1,343,000)

Assets Test Cut-off: Homeowners

• Single: $733,500 (up from $722,000)
• Couple (combined): $1,102,500 (up from $1,085,000)

The asset test for homeowners excludes the value of primary place of residence.

Income and Deeming Changes

Centrelink’s deeming rules assume your financial investments earn a certain rate of income, regardless of what they actually return. From 1 July 2026, the threshold at which the higher deeming rate of 3.25 per cent applies has increased to $66,800 for singles (up from $64,200) and $110,600 for couples (up from $106,200). The fortnightly income-free area has also risen, to $226 for singles (up from $218) and $396 for couples (up from $380).

Income Test Cut-off (Per Fortnight)

• Single: $2,627.80 (up from $2,619.80)
• Couple (combined): $4,016.80 (up from $4,000.80)

Why This Could Matter To You

If you’ve built a significant portfolio of assessable private investments, direct shares, managed accounts, term deposits and similar holdings, there’s a good chance you’ve previously been assessed as ineligible for any age pension because your assets or deemed income sat just above the cut-off. With these thresholds now higher, that may no longer be the case.

“We’re seeing clients with substantial investment portfolios who assumed the age pension was simply off the table for them,” said Robert Tawil, Adviser at Vantage Wealth Management. “With these thresholds moving up, some of those same clients may now be entitled to a small part pension. The dollar amount might be modest, but it comes with a Pensioner Concession Card rather than the Commonwealth Seniors Health Card, and that card can translate into real, ongoing savings on healthcare and everyday costs. If your circumstances haven’t changed dramatically since you were last assessed, it’s worth checking again.”

What We Would Suggest

If your assets or income were previously close to these limits, now is a sensible time to revisit your position. Even a small part pension entitlement can bring valuable flexibility and concession benefits alongside it.

We’d welcome the opportunity to review your situation against the new thresholds and let you know whether they open up any entitlement for you. Please get in touch with your Vantage Wealth Management adviser to arrange a time.

*This article contains purely factual information and/or general advice and does not constitute personal financial product advice.  The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation.  We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

Robert Tawil – Private Client Adviser – Vantage Wealth Management

Robert holds a Bachelor of Economics (Economics, Quantitative Economics, Money and Banking, and Finance) from the University of Western Australia and a Diploma of Financial Planning. This allowed him to qualify as a Certified Financial Planner®. He commenced working in the financial services industry in 2015 and is a member of the Financial Advice Association Australia.

Robert values building strong relationships that are founded on trust and is passionate about helping people take control of their financial affairs and achieve their goals.

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When we think about retirement, we usually imagine the overseas trips, long lunches and guilt-free naps. After decades of work and responsibility, we can finally spend our days doing the things that could once only be squeezed into holidays and weekends.

But retirement tends to happen in phases, and each phase places very different demands on our time, energy and finances. Understanding them upfront can put you in a much stronger position to enjoy the early years without compromising the later ones.

The Active Years (60 to 70)

The active years are when your health is generally good, your energy levels are still high, and there’s a backlog of interests and hobbies waiting to be explored. Travel, classes, volunteering – your to-do list will fill quickly.

But what often surprises retirees during this phase is how much money they’re spending. The costs associated with working life and supporting a family may have fallen away, but they’re quickly replaced by spending on experiences (not to mention new cars and long overdue renovations).

The main risk here is parting with too much money too quickly. The early retirement years are known as the go-go years for a reason, but you’ll need to strike a balance between making memories and preserving your savings. While the more lavish expenses will taper off over time, others – like council rates, utilities and insurance – will continue regardless of how active you are.

A few things that might help in this phase include:

• Making sure you have a clear retirement spending plan that factors in inflation
• Maintaining a cash buffer to fund irregular or one-off expenses
• Checking your eligibility for the Age Pension as you approach 67.

The Sedentary Years (70 to 80)

This phase tends to herald the quieter part of your golden years. Regular outings become less appealing, doctor’s appointments become more common, and – wonderful as they might be – visits from your grandkids might demand an extra rest day or two for recovery.

As the pace of life slows, we tend to see less spending on big ticket items and more on day-to-day living and hobbies of the more relaxing, if not sedentary, kind. It’s also around this time that healthcare costs start to rise.

So while this phase might not be as eventful as the first and last stages, it marks an important inflection point as far as your finances are concerned. Some things to consider include:

• Ensuring your income streams are simple, reliable and easy to manage
• Deciding whether to downsize your home
• Planning for higher healthcare costs without assuming they’ll be covered entirely by Medicare
• Making sure your will, super beneficiaries and powers of attorney are up to date.

The Frail Years (80+)

The final phase of retirement is the one furthest from people’s minds throughout their working years, but it’s often the most expensive and least flexible.

It’s during this phase that health issues become more pressing and daily tasks start to require assistance. Some people remain at home with support – whether it’s family, carers or mobility-friendly home modifications – while others move into aged care facilities.

Whatever you choose, there’s still a lot of uncertainty around long-term costs. While average life expectancy statistics can provide a rough benchmark to help you plan, they can’t be treated as predictions. You might have to fund your lifestyle for another decade or two beyond what you might initially expect.

Preparing for this phase involves:

• Understanding how aged care funding works and how your income and assets may be assessed
• Reviewing your super, savings and investments to make sure they can support you long-term
• Staying vigilant for scams and financial abuse, which older Australians often fall victim to.

Planning Across All Three Phases

The most effective retirement plans consider all three phases from the very beginning. Focusing just the early years can leave you struggling later on, when your options have narrowed and money is in shorter supply.

This doesn’t mean predicting every expense or living frugally for decades. But you should recognise that retirement is a long-term journey that requires you to evolve with it.

If you can remain flexible and open to adjusting your spending, lifestyle and priorities as each phase unfolds, you’ll be better placed to enjoy the full spectrum of retirement, from the lively years to the quieter, more dependent ones.

*This article contains purely factual information and/or general advice and does not constitute personal financial product advice.  The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation.  We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

This information was sourced from the Financial Knowledge Centre.

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Retirement is meant to be a time of freedom, rest and recreation. But despite all the planning and anticipation leading up to it, there’s always a chance it won’t live up to our expectations.

Fortunately, little shifts in behaviour can go a long way. Here’s what psychology tells us about staying happy and healthy, maintaining a sense of purpose, and making the most of your retirement years.

Keep your mind active

Retirement is known to speed up cognitive decline (with verbal memory in particular worsening 38% faster post-retirement), but the good news is there are things you can do that can help slow or even prevent this.

Think of your brain as a muscle — something that gets stronger with use and weaker with neglect. It might have been getting regular workouts during your pre-retirement years but now you have to look outside the box for ways to keep it active.

While the jury is still out on brain training apps, there are plenty of activities whose benefits are grounded in empirical evidence.

For example, one study of 7,000 people aged 65 and older found that volunteering can be very effective at keeping your mind sharp. And if you always wanted to learn a new language or musical instrument, it might help to know that both have been linked to improved cognitive function.

Foster strong social connections

Staying connected with people is essential for a happy retirement, but it can be hard without the built-in socialisation that work provides. This can give way to a host of problems — loneliness, depression, and even early mortality.

Try to stay socially active by reaching out to friends, joining community groups, or taking up new hobbies that involve others. You don’t even have to leave your home sometimes — regular online calls have been shown to be very effective at boosting your mood and warding off social isolation.

Strike a balance between over- and under-spending

Attitudes towards money tend to shift in retirement. Your super is no longer being topped up and each withdrawal you make means that money no longer has the chance to keep growing (or recover if markets are down).

Sometimes a bias known as loss aversion kicks in, prompting retirees to tighten their pursestrings. While this instinct is understandable, it’s possible to take it too far.

Yes, you don’t want to deplete your savings too quickly. But you probably don’t want to let the fear of depleting your savings cost you a worthwhile retirement either. Instead of hoarding your cash, try to find a sensible middle ground between over- and under-spending that lets you enjoy the fruits of your hard work over the years.

Try to forge a new identity

Having given so much of yourself to your job over the years, it’s only natural to feel a sense of loss once it’s no longer there. The existential vacuum that pops up in its wake can be scary, but it’s also the perfect opportunity to reinvent yourself.

Look for new interests you can explore or old ones you can re-discover. Carve out time to indulge in creative pursuits. Research shows that you can develop your creativity through practice just like any other skill, so try to find outlets that are both enjoyable and challenging.

Carving out a new identity can be difficult, especially when so much of your time, energy and self-worth were tied to what you did for a living. But as you pursue new interests and develop new routines, you might come to realise how fulfilling the unfamiliar can be.

For a review of your personal financial circumstances to support you in finding your balance in retirement we recommend that you seek the advice of a professional adviser.

Source

This article was sourced from the Vantage Wealth Financial Knowledge Centre with statistics accurate as May, 2025.  The Knowledge Centre provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances. Vantage Wealth Management Pty Ltd has representatives who are authorised to provide personal financial advice.  

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While there’s an excitement to not knowing what your post-work years have in store for you, chances are you don’t want to put a foot wrong. That’s why the lead-up to retirement is so important — it’s a time to reflect on what you want in the years ahead and ask yourself if you’ve done all you can to make it possible.
Below are some questions to consider as you prepare to make the jump.

Is your super sorted?

Decades of contributing to your super will have hopefully left you with a tidy sum, and it won’t be long now before you’ll be able to access it. You should have an idea of what your balance will look like come retirement, but will it be enough to secure the lifestyle you want?

Questions to ask yourself:

• If your super balance isn’t as high as you’d like it to be, have you thought about topping it up? This can be done by entering a salary sacrifice arrangement with your employer or by making voluntary contributions from your savings or take-home pay.
• Have you decided whether you’ll be receiving your super as an income stream, a lump sum, or a combination of both? And are you aware of the tax implications of each option?
• Have you considered a transition to retirement pension? This can allow you to reduce your work hours while using part of your super to make up for the shortfall in pay.

What about other income sources?

Are there any other income sources that you’ll be able to rely on in retirement? Many people can count on investment properties or dividend-producing shares to supplement their super. You might even have savings that produce enough interest to cover part of your expenses each month.

Questions to ask yourself: 

• If you have investments outside super, have you considered whether they still suit your risk profile, goals and circumstances? And will you hold them for a while longer to benefit from the dividends or do you plan to gradually sell them off?
• Have you worked out how much you’ll be spending in retirement? The ASFA Retirement Standard suggests a couple who own their own home and intend to live a comfortable lifestyle in retirement will need around $73,337 per year. Will your income sources be able to cover this?
• Will you be eligible for the government Age Pension? And have you looked into the other benefits that are available to older Australians, such as the Pensioner Concession Card and Health Care Card, which can help you save money?

What will your lifestyle in retirement look like?

With your working years behind you (and blaring alarms and long commutes now a thing of the past), do you have an idea of how you’ll be spending all your free time? Retirement can be a golden opportunity to take up new activities and rediscover your passion for old ones, and while some of these might not be so friendly to your wallet, there are plenty that are inexpensive or even free.

Questions to ask yourself:

• Do you have a vision of the type of lifestyle you want in retirement? Will it be lively and full of travel or are you content to stay put and focus on spending quality time with family and friends?
• Will you be taking on babysitting duties for your grandkids? And does your budget allow for any financial support or gifts you intend to give your children or grandchildren?
• If you’re planning on downsizing your home, have you considered making a downsizer contribution to your super? So long as you’re 55 or older and meet the eligibility criteria, you’ll be able to top up your super (up to $300,000 for singles and $600,000 for couples), from the proceeds of your property sale.

Do you have any outstanding debts?

Retiring with debt isn’t exactly ideal — it can put your budget under pressure and leave you vulnerable to interest rate fluctuations — but it’s becoming increasingly common. If debt has followed you into old age, you might need to come up with a plan to address it or risk having to budget around it for years to come.

Questions to ask yourself: 

• Do you have a strategy for tackling your debt? Some people prefer to pay down the smallest debts first and work their way up to the larger ones, while others focus on high interest debt like credit cards with the goal of saving money over the long-run.
• Have you considered putting off retirement? This can give you time to address any outstanding loans and leave you more financially resilient for when you do eventually hang up your hat.
• If you owe money on an investment property (or you have a property portfolio that’s heavily leveraged), is the rent you’re receiving enough to cover the repayments?

Have you tied up other loose ends?

Beyond your finances and how you’ll be managing the day-to-day reality of retirement, have you given any thought to your estate plan? Getting your affairs in order takes time and will typically involve in-depth discussions with a lawyer and financial adviser, so make sure you have a team on your side you can trust.

Questions to ask yourself:

• Do you have a Will, and if so, have there been any major changes to your circumstances since it was drawn up that would warrant an update? Beyond your Will, have you looked into things like an Advance Care Directive and Enduring Power of Attorney?
• Do you have a valid beneficiary nominated for your super? This is crucial as super doesn’t automatically flow to your estate when you die and generally isn’t subject to the terms laid out in your Will (unless you nominate your legal personal representative as a beneficiary).
• Have you had the aged care discussion with your family? This doesn’t have to centre on residential aged care facilities — you might prefer to access in-home care, which would allow you to ‘age in place’ instead.

If retirement is just around the corner and you’re still feeling a bit anxious, consider speaking to a financial adviser. They can give your finances a health check and help you identify areas that might require more focus.

 

Source

This article was sourced from the Vantage Wealth Financial Knowledge Centre, statistics accurate as at 13th of December, 2024 .  The Knowledge Centre provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances. Vantage Wealth Management Pty Ltd has representatives who are authorised to provide personal financial advice.

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Introduction

As you approach retirement age, forward planning every source of monetary support becomes increasingly critical. One of the key components of this planning is understanding the Age Pension and the Commonwealth Senior Health Card, both administered by Centrelink.

Age Pension: A Vital Lifeline

The Age Pension is a vital safety net designed to provide financial assistance to Australians aged 67 and over who meet specific eligibility criteria. It is intended to ensure that retirees can maintain a reasonable standard of living throughout their retirement years. The age pension can provide financial support up to the following amounts:

* as at September 2023

To be eligible for the Age Pension, you must meet the following criteria:

• Age Requirement: You must be at least 67 years old, but this age may increase in the future as the government adjusts the pension age.
• Residency: You must be an Australian resident and meet certain residency requirements. These requirements typically involve residing in Australia for a specified number of years.
• Income and Asset Tests: Centrelink assesses your income and assets to determine your eligibility for the Age Pension. For the purposes of the Income Test, Centrelink will assess income from all sources including employment and investment earnings. Assets encompass most assets you and your partner own with the notable exception of your principal residence.

Based on your family situation the lower thresholds represent the maximum allowable income and assets to be eligible for the full age pension. The upper thresholds represent the maximum allowable income or assets to be eligible for a part Age Pension. Centrelink will assess your situation using the test which results in the lower age pension payable.

Income Test:

Assets Test:

The Age Pension provides a financial lifeline for many retirees, but it’s essential to understand the means testing process and how it may affect your pension amount. Professional financial advice can help you optimise your financial situation to maximise your Age Pension entitlement while complying with Centrelink’s rules.

Commonwealth Senior Health Card: Access to Health Benefits

The Commonwealth Senior Health Card is another valuable benefit for eligible retirees. It provides access to essential health-related concessions and benefits, helping you manage the costs associated with healthcare and prescriptions. To qualify for the Commonwealth Senior Health Card, you must be aged 67 or over, be an Australian resident and satisfy the income test.

The income test is the primary eligibility requirement for the Commonwealth Senior Health Card. If you meet the income threshold, you will be eligible to receive the card. Below are the current income thresholds:

Holding a Commonwealth Senior Health Card offers several valuable benefits, including:

• Pharmaceutical Benefits Scheme (PBS) Discounts: Cardholders are entitled to significant discounts on prescription medicines under the PBS. This can lead to substantial savings on essential medications.
• Medical Services: You may be eligible for bulk-billed doctor’s visits under Medicare, meaning you won’t have to pay any out-of-pocket expenses for essential medical consultations.
• Concessional Rates: The card provides access to concessions on various health services, including eye care, dental services, and hearing aids.
• Energy Rebates: Depending on your state or territory, you may also qualify for energy rebates, which can help reduce your utility bills.
• Travel Discounts: Some states offer travel concessions, such as reduced public transportation costs and discounted taxi fares.

Navigating Centrelink: The Application Process

Applying for the Age Pension and Commonwealth Senior Health Card can be a complex and time-consuming process. To simplify this, follow these steps:

• Gather Required Documents: Ensure you have all the necessary documents, including proof of identity, residency, income, and assets.
• Contact Centrelink: Reach out to Centrelink to begin your application process. You can do this online, over the phone, or in person at a Centrelink office.
• Attend an Interview: Centrelink may require an interview to assess your eligibility accurately. This can be conducted in person or over the phone.
• Submit Your Application: Complete the required forms and provide all supporting documents promptly to expedite the application process.
• Await Assessment: Centrelink will assess your application and provide a decision regarding your eligibility and entitlements.

A Vantage adviser can assist you through the application process and streamline what can be a burdensome process.

As you approach retirement, financial planning becomes more critical than ever. Professional financial advice from Vantage can help you navigate the Centrelink system, optimise your pension entitlements, and ensure you receive the healthcare concessions you deserve through the Commonwealth Senior Health Card. By staying informed and seeking expert guidance, you can enjoy a more financially secure and comfortable retirement.

Disclaimer:

All information relating to the eligibility criteria a valid as at 20 September 2023 and are subject to change.

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About the Author:

Sam Bolwell – Private Client Adviser – Vantage Wealth Management

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