SO WHEN IS YOUR PRESERVATION AGE?
For most of us it is either 55 or 60.
If you were born before 1 July 1960, your preservation age is 55.
If you were born after 1 July 1964, your preservation age is 60.
Between 1960 and 1964 the age steps up year by year (see the table below)
MONEY FOR NOTHING?
Some companies may offer you an income stream — not for part of the existing value of your home — but in return only for its capital appreciation.
This may sound very attractive. (Almost too good to be true?)
These agreements, called property options, are generally valued very conservatively though. The income you receive will probably be much lower than the capital appreciation of your home which you are giving up.
The good news is that if you lose your entitlement to the age pension because of the changes to the asset test, you will automatically be issued with a Commonwealth Seniors Health Card.