Wealthy seniors are claiming pensions despite having significant assets in addition to their homes, Tanya Plibersek has been warned by her department, which recommends a wider program of social security reform.

The Department of Social Services’ advice, contained in its incoming ministerial brief, places pressure on the Albanese government to reform the assets test by noting the generosity of pensions in helping retirees build additional wealth for inheritances rather than merely paying for retirement.