Vol 10 Ed 9 - Financial Care Services

Volume 10 Edition 9- 30 September 2020

https://financialcareservices.com.au/vol-10-ed-9

Financial Care Services, the specialist adviser to seniors in transition to new lifestyles

No increase in Age Pension rate this September

The full rate of Age Pension is usually increased each March and September in line with increases in the Consumer Price Index “CPI” over the six months to the previous December and March respectively.

But 2020 is different. The CPI went down. The price of the average ‘basket of goods’ was lower in June 2020 than it was in December 2019. Thus your full Age Pension would buy slightly more now than it did last December.

Therefore the full Age Pension rate would not be increased this month.

Please be aware that the CPI rate needs to increase above the December 2019 figure before the Age Pension is raised next. Just having a positive movement in the CPI for the half year to December 2020 would not be enough to raise the Age Pension rate in March 2021.

The next increase in the full Age Pension would reflect the movement in the CPI from December 2019 not just the positive change in the last six months. You might be waiting until September 2021 or possibly later, before the full Age Pension rate increases.

In the meantime, your personal rate of Age Pension payment might change to reflect any changes in your circumstances.

If your Age Pension payment rate is being hit by the Asset Test then a reduction of $1,000 in your asset value could yield $3 per fortnight of additional Age Pension. Updating Centrelink about your bank balance might be worthwhile if you have been dipping into your savings.

Updating Centrelink about your other financial assets might not generate the answer you expected.

If you ask Centrelink to revise the values of your financial investments, such as listed shares and managed funds, then Centrelink will use the ‘market values’ of these investments a fortnight ago.

For example, Bob notices that the market price of his bank shares today is $10,000. This is lower than the value of $12,000 shown on his last Centrelink record.
Bob is already upset that the market price of his bank shares has dropped when he contacts Centrelink.
Centrelink revise the record of Bob’s assets to show an even higher value of Bob’s bank shares. Bob is even more upset.
Bob had forgotten that two weeks ago the market price of his bank shares were at a peak of $14,000, before dropping fast.
Bob failed to wait the full fortnight after the market prices dropped before asking Centrelink for a revaluation.

Help to understand how your situation fits in the Age Pension system.

The calculation of your Age Pension amount, if any, can be challenging.
The easy route is to ask for the Age Pension Illustration Personal Data form as a checklist of essential data and then arrange for a ‘$99 Special Age Pension Illustration Short Consultation’ with Christine Hopper of Financial Care Services.

If the Income and/or Assets Tests would exclude you from the Age Pension, Christine could help you check whether you would qualify for the Commonwealth Seniors Health Card. Alas holders of the Commonwealth Seniors Health Card do not qualify for the full range of concessions that come with the Pensioner Concession Card.

Christine Hopper of Financial Care Services offers Short Consultations for ‘personal factual financial information’ in the form of an Illustration of the amount of Centrelink Age Pension you could receive today provided that you satisfied the age and residency conditions for a Centrelink Age Pension.

Contact Christine at Financial Care Services to obtain the Age Pension Illustration Personal Data form. You will also receive our Client Services Guide that provides essential information about Christine Hopper of Financial Care Services.

Alternatively you could search through the Centrelink website for clues about Pension rates and means tests then do the sums yourself.

Income limits for Commonwealth Seniors Health Card held steady

The limits on ‘adjusted taxable income’ for Commonwealth Seniors Health Cards are usually adjusted each September. The cut-off levels are usually increased in line with movements in CPI. But CPI did not increase over the year to June 2020.

Therefore the limits on ‘adjusted taxable income’ remain at $55,808 a year for a single person, and $89,290 a year in total for a couple living together.

Help with Commonwealth Seniors Health Card forms is available from Christine at Financial Care Services. Christine has neat handwriting for inserting your data into the little boxes on Centrelink forms.

When life as a carer is really hard

The isolation of prolonged ‘lockdowns’ can be overwhelming for carers.

We want to be there to care for family members and close friends who are challenged by physical or mental health conditions. But being a fulltime carer can be physically and emotionally exhausting.

A new nationwide network of Carer Gateway service providers has been established by the Commonwealth. The idea is that you could actually have someone to talk with when life as a carer is hard.

The network of Carer Gateway service providers allow carers access to:
• phone-based counselling now and in-person counselling when we are allowed to meet;
• online peer support now and maybe in-person peer-support when group gatherings are allowed
• targeted, financial support packages with a focus on employment, emergency and planned respite
• online coaching, information and advice
• practical educational resources to improve carer wellbeing, skills and knowledge.

Carers can access services, including in-person services,
by calling Carer Gateway on 1800 422 737 or
visiting the Carer Gateway website . https://www.carergateway.gov.au/

This service is new. Your feedback is welcome.
If you have a good experience with the Carer Gateway please share the positives to encourage other carers who are doing it tough on their own.

Christine at Financial Care Services your independent adviser

Financial Care Services is an independent advisory service specialising in retirees of modest means and aged care entrants.
Our core values include working with clients in claiming DVA and Centrelink entitlements.

The team at Financial Care Services are here to answer your Age Pension questions and guide your understanding of aged care costs.

Help with Centrelink challenges is available from Christine Hopper at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles.

Christine has neat handwriting just right for inserting your data into small printed spaces. She helps clients complete Centrelink forms.
Christine could help you with collating your supporting documents and then mailing your form to Centrelink.

Assistance with completing the Commonwealth aged care means testing forms is available to clients of Financial Care Services.

Christine charges fees based on the work involved in advising you about pensions and aged care fee solutions.

To make an appointment for confidential, independent and professional advice about aged care, retirement lifestyle costs, granny flat or Age Pension issues please contact Christine Hopper or call +61 3 9808 0338.

______________________________

Christine Hopper
Financial Care Services Pty Ltd
Independent aged care, strategic lifestyle and Social Security advice for seniors in Melbourne, Victoria, Australia
Telephone – call +61 3 9808 0338
Email – contact info@financialcareservices.com.au
Address – mail to 172 Warrigal Road, Camberwell Victoria 3124
Website – visit financialcareservices.com.au
LinkedIn – connect https://www.linkedin.com/in/christinehopper1
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Past newsletters – see http://financialcareservices.com.au/newsletters/
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Disclaimer: The information contained in this newsletter is of a general nature only and does not constitute “financial advice”.
All eligibility for Commonwealth benefits will be determined by Centrelink or DVA, based on your personal position as documented and the legislation and Regulations in force at that time.