Provided by Mercer: 16/5/08
Read on for a summary of how the Budget will impact those aged over 55.
The Government has reinforced last year’s super reform, which allows people who have reached age 60 to withdraw their super tax free in retirement.
Speak to a Mercer financial adviser about getting your contributions strategy on track for a comfortable retirement.
The Government will provide one-off lump sum payments of $500 to eligible senior Australians, $1,000 to Carer Payment recipients and $600 to Carer Allowance recipients, by 30 June 2008.
Read more about payments for seniors
Read more about payments for carers
To help meet the rising cost of living, the Age Pension will be indexed to the highest of the Consumer Price Index (CPI), the Male Total Average Weekly Earnings benchmark, or the Living Cost Index for Age Pensioner Households.
From 1 July 2009, the incomes test for the Commonwealth Seniors Health Care Card will include salary sacrifice super contributions and gross income from super pensions.
From 1 July 2009, the definition of income to determine eligibility for several government support programs will include certain salary sacrificed contributions to super. This will affect some people’s eligibility for the Government Co-contribution (whereby the Government tops up your super when you make a post tax contribution).
Are you eligible for a Government Co-contribution this financial year?
Speak to a Mercer financial adviser about your contributions strategy. If you have a transition to retirement pension, could you take advantage of both salary sacrifice and the Government Co-contribution before 1 July 2009?
This information has been prepared by Mercer (Australia) Pty Ltd ABN 32 005 315 917 for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a licensed or appropriately authorised financial adviser before making any investment decision.
