Many people think they can rely on the age pension to provide them with an income in retirement. However, to ensure social security benefits are only paid to those in genuine need, the government uses strict assets and income tests to determine eligibility.

And, because we’re living longer and having fewer children, there will be proportionately fewer people in paid employment in the future. This means there will be less tax money to fund progressively more and more retirees.

The implication is that many people won’t be eligible to receive social security benefits in retirement.

As part of the retirement planning process, your financial planner can structure your assets to generate income whilst maximising your social security entitlement.

Social security eligibility is important because it gives you access to benefits such as discounted pharmaceuticals and travel, and a variety of other entitlements.