Understanding your finances in relation to veteran entitlements and compensation payouts can be complex. There are many ways that veterans can find support to understand their finances more comprehensively.
Having access to financial planners and a certified finance team means that veterans can find support no matter their financial situation. There are 2 key areas where veterans require guidance on decisions that directly affect their DVA benefits.
SRDP – Special Rate Disability Pension and
PI – Permanent Impairment.
When a veteran receives a letter advising them that they are eligible to access the SRDP, it can be a long overdue validation that their injuries were sustained during service. It can also be quite confusing as to what are the next steps in the process. This overcomplication often leads to veterans simply ignoring the SRDP letter and delaying their active choice.
An SRDP is offered as an alternative to incapacity payments, for those who have served in the military on or after 01 July 2004 and whose injuries or conditions have left them unable to work or severely incapacitated.
SRDP isn’t automatically provided, once a veteran becomes eligible, they will receive a letter from the Department of Veteran Affairs and they will be offered the choice of receiving taxable incapacity payments up until they reach Age Pension age or a tax-free SRDP if they:
are assessed as:
When a veteran has been offered an SRDP they are legally required to meet with a financial adviser. By meeting with a financial adviser, a veteran will be able to quantify their current position, see all their options, and then make an informed choice about what could be the best move forward for them and their families.
Being injured during service is a situation that many current and former ADF personnel face. There are many circumstances that need to be considered when you’re looking to submit a PI claim.
Submitting a claim is a daunting process and it’s vital to work with a team that can support you in making the process simple and effective. To understand more about the claims process head HERE
Working with a team that is experienced in the claims process, often a veteran will receive a PI compensation payout. Understanding how to best manage any large sum of money so that it is working to secure your future is VITAL.
Where there has been a massive change in financial circumstance, whether through a compensation payout or transitioning from working for the ADF to the private sector, having a financial planner who understands the needs of veterans is key to competent management of veteran finance.
If an SRDP or PI claim has been successful and entered into, receiving the best advice about ongoing financial planning ensures that finances are secured for longevity and safety.
Even if a claim has not been submitted or successful, veterans will often have a unique set of circumstances that mean that they need a team that can understand and work with them to create a financial plan to build wealth for them and their family’s future.
Home Ownership is a fundamental part of the Australian dream and should be within reach of all Aussie Veterans. Most mortgage brokers are simply set and forget when it comes to helping with home loans.
Veteran Benefits Australia can help veterans access information about the current best market rates and refinancing options for new or existing loans.