Seniors welcome deeming rate cut
Some pensioners and self funded retirees will have more money in their pockets next month after the federal government announced the deeming rate would be cut from 4 November 2013.
Social security deeming rates are meant to reflect the standard returns pensioners can earn on their investments, and, therefore, are used to determine individual pension levels.
The deeming rates would decrease to 2% from 2.5% for financial investments up to $46,600 for single pensioners and $77,400 for pensioner couples.
For balances over these amounts, the upper deeming rate would decrease to 3.5% from 4%.
National Seniors Australia chief executive, Michael O’Neill, said older Australians with such investments would welcome the announcement.
“This will help some of the many who work hard at managing on a fixed income,’’ Mr O’Neill said.
“Now we need to make sure the deeming rate remains in line with the cash rate.
“National Seniors lobbied for the last deeming rate cut in March this year after four years of no change and more recently during the election when we called for deeming rates to remain in line with the cash rate.”
