Listen in to Paul chat with John Mackenzie on 4CA Cairns and find out more:

At What Age Can I Claim Age Pension?

You can claim Age Pension at age 67. This is the same for both men and women. If only one person within a couple has reached age 67, then that person can apply, but the overall application will be subject to the normal asset test and income test rules, where the total assets and income of the couple are included (not just the assets and income of the person applying).

Is the Age at Which I Can Access My Superannuation and the Age at Which I Can Receive Centrelink Age Pension Linked at All?

No! You can start to access your superannuation as early as age 60, depending on your employment status, and if you choose to access your super as a pension. Then, at age 65, your superannuation is completely accessible. Whereas the Centrelink Age Pension cannot be applied for until age 67. They are governed by two completely different sets of rules. This is an area where we receive many questions and there is much confusion.

Are There Any Assets Treated Differently for Age Pension Assessment and Are Some Assets Exempt from Assessment?

There are a few assets that are exempt from the Age Pension Assets Test, and three of the main ones are:

• The home you live in or principal place of residence.
• The balance in a superannuation accumulation account of a person under age 67 (if you have already converted to an account-based pension, it is assessed)
• Up to $15,000 invested in funeral bonds or a prepaid funeral.

No matter what you hear at BBQs with friends, all other assets are assessed, and they are assessed the same in that Centrelink does not distinguish between cash, shares, property, super, and pensions. They are all assessed the same.

What Amount of Assets Can I Have?

To get the full Age Pension for a single pensioner, which is $1,116.30 per fortnight, your assets must be less than $310,750. The Age Pension gradually reduces to nil up to an upper asset threshold of $674,000. To get the full Age Pension for a couple, which is $841.40 per fortnight each, your assets must be less than $451,500. The Age Pension gradually reduces to nil up to an upper asset threshold of $1,012,500.

What Income Can I Earn?

Age pensioners are often concerned about earning some level of employment income to help top up their overall income. A single age pensioner can earn employment income of up to $13,104 per annum without reducing the maximum pension at all. A couple can earn employment income of up to $24,960 per annum without reducing the maximum age pension. The upper income test at which point the Age Pension reduces to nil is $60,632 for a single pensioner and $92,768 for a couple. Therefore, if you feel like you would like to do some casual or part-time work, then it is still worthwhile working.

What Not to Do?

Don’t compare yourself to others. Only you know your overall asset and income position, and only you have the unique set of circumstances in terms of assessment for the Age Pension. Just because your neighbour or a friend is getting a certain level of Age Pension, the worst thing you can do is compare yourself to them, as they don’t know your full financial position, and you don’t know their full financial position.

Looking to optimize your retirement planning? Connect with Amanda Golder, the esteemed FPA Aged Care Specialist in Cairns. Secure your spot by reaching out to Fowler’s Group at 1300 855 849 and schedule an appointment today!