Get a better return without hurting your pension

The deeming rate - the rate at which Centrelink assumes you are earning interest on your investments - has recently dropped.

Which means now is the time to look for a better rate of return without it impacting your pension payment.

The previous deeming rate for a single pensioner was 2.5% for the first $46,600 and 4% on anything over that amount.

These rates have now dropped to 2% and 3.5% respectively. So if you are actually getting a higher interest rate than this, Centrelink doesn't take this extra income into account.

For example, if you had $100,000 in a cheque account earning 1% interest and you moved it to an online account earning 4.2% interest, you could have an extra $3200 a year in your pocket with no reduction to your pension.

This isn't cheating the system - it's putting the system to work for you.

Pensioners should consider their investment options to take full advantage of the deeming rates change.

This isn't just for retirees - all people receiving a Centrelink pension or allowance can shop around to earn a higher rate of income than the deeming rates.

We host seminars regularly to help provide information you may need to make an informed decision in relation to your financial situation.

For more info chat to a Financial Information Officer on 132 300.

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