From 1 January 2015, income from account-based pensions, unless grandfathered, will be included in the CSHC income test.1
If you are a current CSHC holder and have an account-based pension started before 1 January 2015, then you will be grandfathered and no income will be counted for the CSHC income test.
If you are a CSHC holder and are considering starting an account-based pension, then you need to move quickly before the New Year to preserve your entitlements.
And there’s another incentive to get your retirement income organised. The government has started to index the CSHC income test limits annually to reflect inflation.
From 20 September this year the income test limits for CSHC holders—those who aren’t eligible for an age pension due to high income or asset levels—increased to $51,500 for single retirees and $82,4002 for couples.
It’s only a small change. But it means if you were just missing out on the CSHC, you may now qualify.
Get organised today!
So even if you don’t receive the age pension, the CSHC could help you save some money. And if you are an existing CSHC holder, then don’t forget to make sure your account-based pension is in place before 1 January 2015 to preserve your entitlements.
Whatever your situation, it’s a good idea to speak to someone today about getting your arrangements in place for tomorrow. Call us on 131 267 Monday to Friday from 8am to 8pm and Saturday and Sunday between 9am and 5pm AEST, or contact your financial adviser.