Deeming rates
Deeming rates and Age Pension estimates.
Deeming is one of the reasons Age Pension estimates can differ from what people expect.
What deeming means in simple terms
Deeming is a method used to estimate income from financial assets for Age Pension income-test purposes. The deemed amount may be different from the actual interest, dividends or distributions received.
- Financial assets can be treated as producing income.
- Different rates can apply across bands.
- Deemed income can interact with other assessable income.
- Official thresholds and rates should be checked before relying on any estimate.
Where it appears in RetireAI
RetireAI uses deeming assumptions in the educational report so the Age Pension section can show where income-test pressure may come from.