Age Pension Incentive
Only 60 per cent of the income from a lifetime income product is assessed as income for Age Pension means testing.
This results in higher Age Pension income for clients who are impacted by means testing - and cannot be ignored.
Means-tested retirees can generally achieve an immediate uplift in their Age Pension income by investing in a lifetime income product. Retirees who currently get no Age Pension can sometimes gain instant access to a small Age Pension as well as the Pensioner Concession Card.
The incentive applies to lifetime income products purchased after 1 July 2019 so long as the product meets the Capital Access Schedule set out in the SIS Regulations (introduced as part of the Innovative Income Stream legislation). Most products do.
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