Supporting self‑funded retirees
Assistance for self‑funded retirees
Jan is 68 and recently retired. Jan does not qualify for the Age Pension because of the income she receives from her investments, but she is eligible for the Commonwealth Seniors Health Card.
Jan will receive the new Seniors Supplement of just over $790 a year for singles. As a result, Jan will have an extra $129 per year to help better balance her budget.
Jan will also benefit from changes to the minimum drawdown amounts for account‑based pensions.
The Government recognises that many senior Australians have saved over their lives to support themselves in retirement.
The Government is simplifying the payment of allowances by combining the existing Seniors Concession Allowance and Telephone Allowance into a new Seniors Supplement.
Single Commonwealth Seniors Health Card and Veteran's Gold Card holders will receive an extra $129 per year to better reflect the costs for those who live alone. This brings the rate paid to singles to two‑thirds of the rate paid to couples combined.
The Government has also extended the drawdown relief provided for account‑based pensions in 2008‑09. This will see the minimum payment amounts for account‑based pensions reduced by 50 per cent for 2009‑10. This will benefit holders of these products by reducing the need to sell investment assets at a loss to meet the minimum drawdown amount. The extension recognises the impact of the global downturn on account‑based pensions.
Some self‑funded retirees will also receive tax cuts on 1 July 2009 as part of tax changes announced in the 2008‑09 Budget.
