A major issue with retirement planning for some people is the way the Centrelink assets test penalises people who have saved more.
Only 44% of Australians who have reached their Age Pension age get the full Age Pension.
A further 20% receive a part pension – where the amount of income they receive varies over time depending on how much their assessable assets/incomes exceeds a particular threshold.
The remainder (36%) either haven’t claimed the Age Pension, don’t meet other eligibility criteria (such as residency rules) or because their assets or incomes are so high that the amount payable cuts out completely.
This makes planning difficult.