Inheritance When on Aged Pension

dmb0312 on 25/03/2024 - 20:34

My mother is going to receive some inheritance of around $180k whilst she is on an aged pension. She rents in govt housing and doesn't have much else – no shares or super, just little bit of cash to get by.

From what I can understand from this link on Services Australia, the inheritance shouldn't effect her aged pension.

https://www.servicesaustralia.gov.au/assets-test-for-age-pen…

Is that correct? I believe she is well and truly under the $543k limit for a single person that's not a home owner. She's been worried her pension might get effected.

Thanks

Financial Inheritance

Comments

  • Pcosmic on 25/03/2024 - 20:36
    -7

    Spend it on ozb

  • Muzeeb on 25/03/2024 - 20:54
    -3

    What did Services Australia say when you called them to clarify?

    • bargaino on 26/03/2024 - 00:33
      +4

      hahahaha! Try phoning them yourself. They never answer.

    • Nugs on 26/03/2024 - 04:23
      +2

      We are experiencing higher than expected…….
      .

      • May4th on 26/03/2024 - 06:37

        you'd think their expectation would adjust after years of having higher than expected call volumes.. hmm..

  • BeamMeUp on 25/03/2024 - 21:01
    +5

    Its best she book an appointment at Centrelink to discuss. All assets are looked at and should be declared. The pension is staggered based on assets. Better to be safe and transparent than centrelink pursuing her later.
    PS make sure she puts the money somewhere to get the best value out of it. UBank is easy 5.1% with a little effort to qualify each month.

  • Drakesy on 25/03/2024 - 21:28

    Just report it to services australia and see what they say. last thing you want is a debt.

  • coffeeinmyveins on 25/03/2024 - 21:40
    +1

    She's been worried her pension might get effected.

    Why? Isn't 180k like, many years worth of the pension?

    IMO I'd be surprised if it didn't affect the pension.

    • Thaal Sinestro on 25/03/2024 - 23:13
      +3

      Housing doesn't affect the pension. You can purchase a 3 million dollar house and still get the pension. Unlike people in public housing you can also take out a reverse mortgage with the government and increase your pension income by 50% (no tax). Australia is heavily rigged in favour of home owners. Almost everyone knows this; almost everyone wants to own their own house rather than rent or live in an institution.

    • trongy on 26/03/2024 - 08:24
      +1

      Services Australia - Assets test

      The assets test for pension eligibility is different for singles and couples, homeowners and non-homeowners.
      OP's mother is a single, non-homeowner so her pension would only be affected if her total assets were above $543,750

      • dmb0312 on 26/03/2024 - 10:17

        Definitely no where near that limit. Services Australia were not helpful when she visited today. Just said come back when you have the money rather than discussing any limits or rules. Process driven staff with no empathy or general idea of service. The irony…

  • Ynk on 25/03/2024 - 22:01
    +9

    It will have no impact on her at all. As you mention she is way under the assets test ($543,750 for full pension rate) and the liquid assets of 180k will be subject to income deeming of around $109 f/n which is under the $204 f/n free area.

    She still needs to notify of change of assets and circumstances once she has received the payment.

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