This unit provides students with an overview to the operation of the social security system in Australia with particular emphasis on the Age Pension. A central tenet of the social security system is equity. Consequently, policy makers attempt to achieve this by using means testing to ensure those people most in need of assistance receive the benefits. A working knowledge of the social security system allows planning opportunities for financial advisers to assist clients to meet their goals. As Australia's baby boomers approach retirement, the problem of financing an ageing population looms. A process for considering alternative arrangements for aged-care services is addressed together with the funding implications for both individuals and government.
This unit will include topics that address the operation of the Australian social security system; eligibility criteria for payments and benefits; the Income Test and Assets Test; Age Pension eligibility for payments; taxation and superannuation implications for the Age Pension.