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If you are approaching retirement age, or are already retired, you may be wondering how to get the most out of your aged care pension. The aged care pension is a government payment that can help you cover the cost of living in retirement, including aged care accommodation and services.

However, the aged care pension system can be complex and difficult to understand. There are a number of factors that can affect your eligibility for the pension, as well as the amount of money you receive.

Few tips for getting the most out of your aged care pension

Understand the income and asset tests

The aged care pension income and asset tests determine how much money you are eligible to receive. The income test looks at your income from all sources, including wages, pensions, and investments. The asset test looks at the value of your assets, such as your home, car, and savings.

Consider structuring your assets

There are a number of ways to structure your assets to reduce your assessable assets and increase your pension entitlement. For example, you may be able to transfer assets to your spouse or children, or invest in assets that are not counted towards the asset test.

Look into government subsidies and concessions

There are a number of government subsidies and concessions available to retirees, including aged care pension recipients. For example, you may be eligible for a rent assistance subsidy or a Commonwealth Home Support Programme (CHSP) package.

Get professional advice

If you are unsure about how to get the most out of your aged care pension, it is important to seek professional advice. An aged care financial adviser can help you understand your options and develop a plan to maximise your benefits.

Getting the most out of your aged care pension can be complex, but it is important to understand your options and develop a plan.