Pensioners may get a $780 Centrelink boost through one bold move

As we age, we often find ourselves contemplating the inevitable.

While it may seem grim, planning for our final farewell can have some unexpected financial benefits.

For Australian pensioners, one strategy could not only provide peace of mind but also boost Centrelink payments.


With the rising funeral costs, pre-paying for one recently became an increasingly savvy move.

Recent figures from Australian Seniors showed that a basic burial could cost up to $18,652, and a basic cremation service could reach $5,953.

These are not small sums, and they're only expected to increase with time.

By pre-paying for your funeral, you can lock in today's prices, potentially saving thousands of dollars.


compressed-pexels-funeral.jpeg
Pre-paying for funerals is considered a bold yet financially smart move, as prices of funeral services continue to rise. Image Credit: Pexels/Pavel Danilyuk


Moreover, these pre-paid funeral costs are exempt from the Age Pension assets test, which could lead to significant increases in your pension payments.

'A pre-paid funeral is essentially a lump sum of money paid to a funeral director for a set outline of costs and services, and they are typically non-refundable,' financial adviser Alex Jamieson explained.

'Centrelink for the age pension says, "Look, we won't assess those as being assets anymore." So hypothetically, if someone pays $10,000 as a pre-paid funeral cost, that would reduce their assessable assets for the asset test assessment.'

This could potentially increase pension payouts by $780 a year or $30 per fortnight.


This increase in pension is akin to a return of 7.80 per cent on your money, which is currently more than what you'd typically earn from an average term deposit.

Over approximately 13 years, the extra pension money could effectively reimburse the money spent on the funeral.

This strategy is particularly beneficial for those receiving a part pension due to the assets test.

Single homeowners could have assets up to $686,250, and single non-homeowners up to $938,250 to qualify for a part pension.

For couples, the limits are $1,031,000 for homeowners and $1,283,000 for non-homeowners.

Pre-paying for a funeral could allow people to qualify for a pension.


Dipping below the asset test limit could also grant pensioners access to additional benefits, such as reduced costs for medications and utilities.

Aside from pre-paid funerals, other strategies like using gifting provisions, spending on holidays or home repairs, or investing in funeral bonds could exempt pensioners from asset tests up to $15,500.

While buying a car or other significant assets would not improve your Centrelink position, strategic spending could make a substantial difference.

While it may feel sad to plan for your funeral, it's a move that could provide financial relief and ensure that your final send-off is taken care of without burdening your loved ones.
Key Takeaways

  • Aussie pensioners could increase their Centrelink payments by pre-paying funerals, which are exempt from the Age Pension assets test.
  • Pre-paying a funeral could lock in cheaper costs, provide peace of mind, and result in a financial return on investment due to increased pension payments.
  • Pre-paid funerals could give pensioners a $780 boost in payouts or $30 fortnight.
  • Other ways to potentially improve Centrelink asset test positions included using gifting provisions, spending on holidays or house repairs, and considering funeral bonds within limits.
Have you considered pre-paying your funeral, or have you taken other steps to manage your assets in retirement? Share your stories and thoughts with us in the comments below.
 
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"Pensioners can get a $780 CASH BOOST!"
What a misleading title, more like a click bait!
Like most of the articles in this website, for example: " A well love actor passed away " Why don't you just get straight to the point, like:" Such and such passed away"? I'm hesitating renewing my membership for that simple reason.
Have to agree with you Yves, I've wondered that for some time.
It is very misleading and frustrating.
It is meant to force you to get a shock or surprise, but eventually, it becomes monotonous and disillusional, resulting in the reader making assumptions about the exaggerated title and then skipping it entirely!
 
In the future when my husband and l are in a financial situation that we can do a prepaid funeral we will be doing so. I don't want our children to have the worry. Thirty years ago my in-laws passed away four months apart and bless them they had done prepaid funerals. As my husband and I were only in our early 30s at the time and also my husband is an only child so it fell on our shoulders more mine than his because he was in full blown grief. The fact mum and dad had done a prepaid funeral was a huge selfless blessing for us. All l had to do was write the eulogy for.both and arrange flowers I put on the the wake at our home.
It was a big help during a very sad time.
The less worry we have to
leave for our kids the better. Also the cost is over the top. I would think most families don't have thousands on hand to pay for unexpected funeral. Also l would not like to think the kids get ripped off thinking we have to give the oldies the most expensive coffin and all the bits that go with it.
The most important thing to me is your memories of your loved one not the send off you have.
Kind regards to all Vicki
 
@sdc I have loved tge articles you post but I'm starting to feel like YOUR HEADERS are deceiving . It's like you are trying to sell newspapers .

We are way past all that. We just want it straight , no trying to trick us.

This article is only goid for those who are $10,000 over their assets limits.

Most people are either way above their limit or way under.

I think this is just trying to sell a funeral plan.

The only reason I'm still paying is I hate adds popping up every few seconds and there are people I love reading their responses to certain articles.

I have to say I'm close to dropping my membership . I'm not on Herr as much due to all these nonsense articles.

Maybe ask us what topics we want to read. Do a survey before you lose a lot of members .
 
Have to agree with you Yves, I've wondered that for some time.
It is very misleading and frustrating.
It is meant to force you to get a shock or surprise, but eventually, it becomes monotonous and disillusional, resulting in the reader making assumptions about the exaggerated title and then skipping it entirely!
I'm not a complainer and appreciate what the staff do but I totally agree with both of you.

I'm thinking the changes have happened since they got new staff.

I'm seriously rethinking my paid membership
 
a"Pensioners can get a $780 CASH BOOST!"
What a misleading title, more like a click bait!
Like most of the articles in this website, for example: " A well love actor passed away " Why don't you just get straight to the point, like:" Such and such passed away"? I'm hesitating renewing my membership for that simple
This article is so disappointing…..absolute click bait! I hardly read any articles anymore and I used to read them all. I pretty much just do the bingo and trivia and that’s been mixed up lately.
 
Once again ridiculous headline.
It’s NOT a $780 BOOST.
You spend $10,000 to get $15 a week extra in Pension.
It will take approx 13 years to earn that money back.
MOST not All pensioners will leave their family with an estate of value when they die and funeral costs will come from that estate.
Those pensioners without an estate couldn’t afford the $10,000 now.

I really wish you would stop the FALSE and SCAREMONGERING headlines that you continually post..
 
Funeral services are expensive and the costs are continuing to rise
I have prepaid mine. My Husband passed away suddenly,
in 1990 I had to pay for his Funeral upfront which caused a strain on the Finances, however I was able to give him a decent sendoff by taking out a loan to cover the remaining expenses.
My advice to anybody would be to look into the cost now, and if
you are able to do it,seriously,
look into paying for your Funeral now.
it would ease the burden from your Family at a time of distress which can make grieving so much harder , when Money may be difficult to
find in a short amount of time. It may also give you the choice to choose what you may like to have in advance.
That maybe something that some people would like to do
before the time.
All the best
"Pensioners can get a $780 CASH BOOST!"
What a misleading title, more like a click bait!
Like most of the articles in this website, for example: " A well love actor passed away " Why don't you just get straight to the point, like:" Such and such passed away"? I'm hesitating renewing my membership for that simple reason.
 
I have funeral insurance, costs $43+ per fortnight, have had it for some years because it's no fun for our children to pay for our funerals while they are grieving and wondering who pays for what, as well as travelling across Australia. My eldest daughter has agreed to turn off any life-saving machines if the remainder of my life will be on them with no communication. My other daughter said she wouldn't want to make that decision, so it's written down to save problems. Instructions will be left with my HCP Advisor to ensure my wishes are followed and that "It has to be cremation, or I'm not going" 😉.

It isn't something we look forward to but it is a must in too many cases. I believe there is a payment made from Centrelink, no idea how much or how long it takes before it is paid out.
 
In the future when my husband and l are in a financial situation that we can do a prepaid funeral we will be doing so. I don't want our children to have the worry. Thirty years ago my in-laws passed away four months apart and bless them they had done prepaid funerals. As my husband and I were only in our early 30s at the time and also my husband is an only child so it fell on our shoulders more mine than his because he was in full blown grief. The fact mum and dad had done a prepaid funeral was a huge selfless blessing for us. All l had to do was write the eulogy for.both and arrange flowers I put on the the wake at our home.
It was a big help during a very sad time.
The less worry we have to
leave for our kids the better. Also the cost is over the top. I would think most families don't have thousands on hand to pay for unexpected funeral. Also l would not like to think the kids get ripped off thinking we have to give the oldies the most expensive coffin and all the bits that go with it.
The most important thing to me is your memories of your loved one not the send off you have.
Kind regards to all Vicki
 
"Pensioners can get a $780 CASH BOOST!"
What a misleading title, more like a click bait!
Like most of the articles in this website, for example: " A well love actor passed away " Why don't you just get straight to the point, like:" Such and such passed away"? I'm hesitating renewing my membership for that simple reason.
Yes, I agree it is misleading and happens too often as in " beloved somebody dies etc..." then it's someone I've never heard of or no real interest in. It wastes time for us and time is precious.
 
I agree with some of the previous "headline" arguments but also agree with the pre-planning importance of funeral preparation!
My wife and I have an appointment with a solicitor next Tuesday to update our 2003 wills and we will be discussing this very topic at that sitting!
 
Funeral services are expensive and the costs are continuing to rise
I have prepaid mine. My Husband passed away suddenly,
in 1990 I had to pay for his Funeral upfront which caused a strain on the Finances, however I was able to give him a decent sendoff by taking out a loan to cover the remaining expenses.
My advice to anybody would be to look into the cost now, and if
you are able to do it,seriously,
look into paying for your Funeral now.
it would ease the burden from your Family at a time of distress which can make grieving so much harder , when Money may be difficult to
find in a short amount of time. It may also give you the choice to choose what you may like to have in advance.
That maybe something that some people would like to do
before the time.
All the best
It would be far more helpful to do a story on managing your own funeral & investigating baskets instead of coffins YUK 🤢 How about some alternative funerals? Much cheaper & nicer for those that abhor the "normal" funerals 🙏
 

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