Selling the Family Home in Retirement: What It Does to Your Age Pension

Sell the family home, and from the day it settles, the money can start cutting your Age Pension. The house Centrelink never counted is suddenly money in the bank. Here's what selling does to your pension wherever the money goes - another home, a retirement village, renting, or super - and why the 24-month rule only shields it from one of the two tests. Free download: The Australian Retirement Readiness Checklist – 48 things to check before you stop working: https://aussiewealthwithemma.com.au Subscribe to get all the latest videos and information: https://www.youtube.com/@aussiewealthwithemma?sub_confirmation=1 TIMESTAMPS 0:00 What selling the home does to your Age Pension 0:56 Why the sale changes everything 1:29 Buying again: the 24-month shield 2:39 When the shield stretches, and when it ends 3:05 The catch: the income test still counts it 3:51 Moving into a retirement village: the $267,000 test 5:20 Selling and renting 6:13 Worked example: Margaret 7:53 Putting some into super: the downsizer contribution 8:51 The whole picture on one card 9:38 In one breath WHAT'S IN THIS ONE (limits from 1 July 2026; deeming rates from 20 September 2026) - While you live in it, your home (and up to 2 hectares on the same title) isn't counted in the assets test - which is why homeowners have asset limits $267,000 lower than non-homeowners - If you're on the pension, tell Centrelink within 14 days of selling - and tell them if you're buying or building again - Buying or building again: the part of the sale money you plan to spend on the new home isn't counted in the assets test for up to 24 months from settlement, and you're still treated as a homeowner. Up to 36 months in some cases, if you've made real attempts within the first year and the delays are out of your control - Only the part for the new home is shielded. The land and the shielded money together can't be worth more than the sale proceeds. Change your mind, and the shield ends that day - The catch: the shielded money is still deemed in the income test - at the lower rate only (currently 1.75%). Anything left over is deemed at the regular rates - Retirement villages: pay an entry contribution over $267,000 (from 1 July 2026; the figure that applied when you bought in counts), and you're treated as a homeowner, with the entry fee not counted. Pay $267,000 or less, and you're a non-homeowner: the entry fee counts in the assets test (it isn't deemed) and Rent Assistance may apply to your fees - Moving into a village before your old home's sale settles: the old home counts as an asset from the day you move in, unless your partner still lives there or you're moving in for care - Selling and renting: no shield - the whole sale counts in both tests from settlement, at the higher non-homeowner limits. A single renter's pension stops at $1,012,750 in assets (higher with Rent Assistance) - The downsizer contribution: from 55, up to $300,000 each into super, outside the contribution caps (home owned 10+ years, generally within 90 days of settlement, once per lifetime). At Age Pension age, super counts in both tests, so for the Age Pension it generally makes no difference - except for a younger partner's super, which isn't counted until they reach pension age (unless it's paying them a pension) - Moving into aged care has its own rules and isn't covered here Related videos: https://www.youtube.com/watch?v=WhfDS6pyibc https://www.youtube.com/watch?v=ChXDFL_yl-U https://www.youtube.com/watch?v=OZHlbePWFkc GENERAL ADVICE DISCLAIMER This video is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal financial advice. Centrelink outcomes depend on your circumstances; check your position with Services Australia or speak with a licensed financial adviser before acting. The ATO suggests considering independent financial advice before making a downsizer contribution, and Services Australia suggests legal advice before buying into a retirement village. A note on how this is made: Every script starts with real research and is checked against current ATO and Services Australia figures - that part isn't automated. AI tools produce the narration and visuals. I write, verify, and stand behind every word. Thanks for being here. #AussieWealth #Superannuation #RetirementAustralia #AgePension #Downsizing #RetirementVillage #Centrelink #RetirementPlanning