Pensioners Warned Beware Of Downsizing

Pensioners Warned Beware Of Downsizing

YourLifeChoices reports:-

"Ann recently sold her home to downsize and deposited the funds in her bank account until she bought a new dwelling. This had implications for her Age Pension and she wants to warns others of her experience. Financial adviser Kane Jiang explains why.

ANN 

I sold my home to downsize from four bedrooms and a granny flat, now that I am widowed, mum has passed on and the kids have left home.

Centrelink subsequently advised that I owed them money because of pension over-payment due to being assessed on my (temporary) bank account before buying another home.

I disputed this and lost.

Kane Jiang, financial adviser

Yes, proceeds should be exempted as “assets”, i.e., if you sold the house for $1 million (which is not uncommon if you are in Sydney as this is the median price), then your $1 million is exempted in the assets test for the next 12 months or until you purchase your next home.

However, as this $1 million will generally be put into a cash account prior to buying the new home, and cash is also “financial investment”, then this asset will be assessed for the income test."

Read the full story here - Ann warns age pensioners to beware of downsizing

Pensioners Warned Beware Of Downsizing

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