Be careful when selling family home
The family home is an untapped source of equity for those who may be adversely affected by the new Age Pension assets test but seniors should give due consideration to the implications of such a decision, according to Homesafe Solutions.
Managing director, Pete Szabo, said a number of pensioners may yield to the temptation of selling their home or downsizing as they faced the prospect of losing their pension or receiving a reduced amount.
However, he warned that pensioners should consider the emotional consequences of downsizing including moving to an unfamiliar neighbourhood where they no longer had their familiar social networks.
While home owning seniors could benefit from significant appreciation of residential property values, especially Sydney and Melbourne, they should also consider the fact that downsized homes or apartments may not be able to accommodate visits from family and grandchildren, or all of their collectables.
"It is for all these reasons that seniors need to consider with great care any decisions they make and ensure that they do not forget the role that home equity can have in securing their financial future," Szabo said.
Szabo said over 300,000 pensioners would have reduced entitlements, with as many as 100,000 losing all entitlements by 1 January, 2017.
Recommended for you
Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand.
The third quarter of 2024 saw the first positive increase in adviser numbers for 12 months, according to the latest quarterly Musical Chairs report, with new entrants overwhelmingly choosing to join privately owned firms.
As more advisers review their fee structures, Business Health has shared six steps to calculating the price to deliver financial advice services in a profitable yet suitable way.
ASIC’s Sarah Court has confirmed the regulator is carrying out systematic work on providers of unlicensed advice but admits it is a case of “whack-a-mole” when it comes to disciplining them.