A couple who lost their pension after winning the lottery asked a financial expert how they could have both. In a letter to Noel Whittaker of the Sydney Morning Herald, the 73 and 67-year-old retirees said they stopped receiving their pension after investing their $1 million prize.
The couple, who are from Australia, said they plan to use the money to purchase a new home and renovate their current one.
They noted that their pension had stopped as a result of their lottery win.
Whittaker said they should consider themselves incredibly lucky and enjoy their winnings.
Here are all the details you need to know about Australia’s age pension.
It’s a type of retirement benefit that’s usually provided to people who have lived in the country for at least 10 years.
In order to receive it, you must meet the following criteria: Have a minimum of five years of continuous residence in Australia, and your income should not exceed A$120,000 annually.
Certain exceptions are made for widows, refugees, and those who have worked in locations outside Australia.
Age pension depends on your assets and income. The maximum amount for singles is around $1020.60, while couples can get it at a rate of $1538.60.
Supplementary supplements can help boost this amount by around $100 a fortnight. How much money can an individual have and still receive an age pension?
The asset and income tests determine how much can be received. Income can include earnings from wages, real estate, dividends, and investments.
The assets you can include include include your financial investments, such as a bank account, a managed fund, a trust, a real estate investment, a car, and other monetary assets you give away.
If you don’t have enough money to meet the income cutoff point, you can get a cutoff of $2444.60, for singles, and $3737.60, for couples.
For a full pension, the cutoff point is around $314,000 for singles, and $470,000 for couples.
For non-homeowners, the cutoff is around $722,000. On the other hand, for a part pension, the cutoff is higher at up to $1,283,000 for couples.