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In today’s high-cost world, every dollar counts. It would certainly hurt to realise you’d missed out on thousands of dollars because you were slow to lodge your aged pension application.
But if you were late to lodge, you wouldn’t be alone.
According to research from one of Australia’s largest superannuation funds, 32 per cent of Australians apply for the government age pension at least a year later than they’re entitled to. On an individual level, this may amount to missing out on as much as $18,480 per person.1 Unfortunately, this lost wealth is not recoverable.
Research suggests lots of Australians wait between two and three years after they’re eligible to apply for the aged pension.2
Financial specialists believe confusion, apathy and a lack of understanding and advice around the generous age pension assets test are the among reasons people are late to apply for the pension.
‘It often comes down to the fact they are confused about the rules and often assume they are not eligible,’ says Aware Super CEO Deanne Stewart.
‘There are groups of people who are still working and assume they can’t access it, which is not true in many cases, especially if they are only working a few hours a week’ she says.
‘We see others delay in applying because they assume they will not pass the Centrelink assets and income tests.’
The financial landscape is complicated, and it pays to seek expert advice to navigate it.
Engaging a Financial Planner is one important way you can be sure to reap every opportunity that you’re entitled to – and when you’re entitled to it.
At 5 Financial, we stay on top of the latest legislation so we can guide you on all the important due dates. We’re about maximising every opportunity to strengthen your financial position – the aged pension being just one of those opportunities that we’ll help make sure you’re eligible and ready to enjoy all the benefits to which you’re entitled. Our experienced advisers more often than not build strategies that not only increase the amount of age pension payable, but also get the age pension for people who would otherwise not qualify.
As a client of 5 Financial, you can feel confident you’re being looked after at every turn and you won’t miss out on any chance to build your wealth and chase your goals.
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Please note, the above information does not constitute financial advice and does not take into account your current circumstances or goals. Please speak with a Financial Adviser before acting on any information found here or throughout the 5 Financial website.