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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Dropping my daughter off at Strathfield station at 6am I was amazed at what I saw
View attachment 53560
And a bit further down was a garbage bin hanging from the roof as well
Are our youth so bored they find delight in these sort of antics?
Suppose it is better than mugging someone for a thrill, but......
 
My uncle has a pre paid funeral plan. Paid for it 15 years ago.

He told me he had everything paid, grave, flowers, cars ect and yes I saw it all on his paper work.

My mother had all his paperwork. My uncle passed away Jan 2023 and with my mother to sick to organise his funeral I was the only one to do it.

I was shocked at all the extra expenses not covered in my uncles fully paid funeral .

Because he passed away on a Saturday and Nursing homes nolonger have morgues , his body need to be moved within 6 hours so it COST AN ADDITIONAL $800 because it was out of hours.

Then I was advised that prepaid funerals don't include digging the grave , so that was an additional $600

So when you think you have paid for everything you actually may not have paid it 100%
 
My uncle has a pre paid funeral plan. Paid for it 15 years ago.

He told me he had everything paid, grave, flowers, cars ect and yes I saw it all on his paper work.

My mother had all his paperwork. My uncle passed away Jan 2023 and with my mother to sick to organise his funeral I was the only one to do it.

I was shocked at all the extra expenses not covered in my uncles fully paid funeral .

Because he passed away on a Saturday and Nursing homes nolonger have morgues , his body need to be moved within 6 hours so it COST AN ADDITIONAL $800 because it was out of hours.

Then I was advised that prepaid funerals don't include digging the grave , so that was an additional $600

So when you think you have paid for everything you actually may not have paid it 100%
Did you ever write a message with lemon juice on paper as a child & this couldn't be seen unless the paper was held up to the light? Same applies here. We used to call this invisible ink.

My G.P. once mentioned how his wife's mother in Holland had a Pre-Paid Funeral. His wife too was hit with 'hidden costs' for her mother's funeral.

Must be a trait with these services in every part of the world l think.
 
I am an 81 year old Pensioner who worked from 1959 until about 2011 paying taxes and am the Carer at home for my wife for 15 years as she has multiple cancers including lung, brain, bowel and colon cancers.
We receive a Stage 4 package for my wife and as her Carer I am receiving a pittance for caring for her. A very large amount of my own money was spent to upgrade our home and purchase walkers, wheelchairs, commodes, remove old bath to turn into a wet room, install grab rails and fit a toilet seat and alarm system to assist her. .then a friend mentioned the Care Package's.
While I’m being very grateful for the Stage 4 package can I ask why we have to pay for Covid test kits to ensure we are doing our bit to slow down Covid, a very expensive expense on test kits for the amount we Pensioners obtained free
Chemist outlolv
 
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I am doing this since 2009, I was always worried about my son having to scrap up money for that. Well, I am only 69 at moment, but I had a scare or two with my husband, that was the reason I got the policy for both of us ! The reason I am writing this, is because I want everybody to be aware how sneaky and bad are insurance companies ! My husband passed away on 15 of April, 2024 and I am still waiting for the funeral money, spending on certified copies, stressing, while on age pension. For 15 years I was never late with a payment, and it got higher and higher, and now they do not want to pay ! I will be happy to hear from anybody, any opinions are welcome.
 
They are just saying what the Government is doing- if the LNP was in power the same would be done.
No, they aren't. They are making it sound like we are getting an increase in pension. We are not getting an increase. Those with assets will be getting an increase the rest of us get nothing. Those that pay rent will be getting an increase, the rest will get nothing. They don't mention that if you have no assets and pay no rent, YOU GET NOTHING!!!
 
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.
And the crossword goes AWOL sometimes too. Also the bingo. Guess it's for people who pay because I get 2 or 3 numbers, then poof, suddenly someone has won it.
 
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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
Hi Vicki. I had funeral insurance for years but the prices kept going up and up. I now have a pre-paid funeral plan through Bare. You are given a price depending on your wishes and are given the choice of paying outright (the price becomes slightly cheaper) or paying it off over five years. They even offer a Will planning service for an extra fee. They are a wonderful company to deal with. My repayments have been $26.00 per fortnight which has been quite affordable.
 
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I wish to make an enquire into a pre paid funeral. I don’t own anything & rely on Centrelink to live. I don’t want to leave the funeral arrangements to my son who lives in another country, How do I go about starting
Contact Bare Pre-Paid Funerals. The staff there are extremely helpful and their costs are very reasonable.
 
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What would happen if the funeral home went bust, would the money be refunded?
Most prepaid funerals have the funds held in trust. If the business folds, the prepaid funds remain in trust.
When I was present with mum who prepaid, it was my first question.
Always check before signing, and, check the conditions. Doesn't hurt to go with a reputable provider as well..
 
I’ve been putting a few dollars away every now and again and have a tiny amount put away. It’s not enough for the two of us. After reading about the prepaid funeral plan, above, I have decided to visit the local funeral home and see if I can set up a plan for both myself and husband.
Thank you
Regards
Carol
 
I’ve been putting a few dollars away every now and again and have a tiny amount put away. It’s not enough for the two of us. After reading about the prepaid funeral plan, above, I have decided to visit the local funeral home and see if I can set up a plan for both myself and husband.
Thank you
Regards
Carol
My wife & l have one each, bought at the same time & paid off together over a long term.
 
Donated my body to science...... no cost.. QED.. I'm buggered if I pay a cent to die....
 
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