Many more to qualify for electricity concessions

Published: April 16, 2009 - 10:00 AM

Falls in super assets mean more retirees are eligible for electricity and gas concessions

The Australian has reported that those people drawing on their super pensions have had a difficult time during the financial crisis. The value of their retirement savings has significantly reduced, yet they still need to withdraw a regular weekly income to pay their bills. The falls in asset values have been so great that people who were previously not entitled to receive the Age Pension from Centrelink or the Department of Veterans Affairs now find they fall within the qualifying criteria.

The Age Pension will help those who have seen their retirement savings plunge by supplementing their super income with a regular payment from the Government. There are also additional benefits such as cheaper electricity and gas bills and cheaper telephone bills by means of pension allowances. The Age Pension payment amount is calculated from income and assets values so while the financial crisis has reduced people’s asset values and investment income this may be partially offset by an increase in their pension payments.

Alison Walter added, “It always pays for retirees to shop around for the best electricity and gas plan as many homes are on the default regulated prices. By switching to a new supplier they could save hundreds on their electricity and gas.”

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