Understanding the Age Pension

Navigating the Age Pension

For most Australians, retirement income is a "three-pillar" approach: your superannuation, your personal savings, and the Government Age Pension. Understanding how you fit into this system is key to knowing when you can afford to retire.

1. Are You Eligible? To receive the Age Pension, you must:

• Be 67 years or older.

• Be an Australian resident (usually for at least 10 years).

• Pass both the Income Test and the Assets Test.

2. The Tests Explained Centrelink will look at both your income and your assets. Whichever test results in the lower pension amount is the one they apply.

• The Assets Test: This includes almost everything you own—investments, cars, boats, and your super balance. Crucially, your family home is generally exempt from this test.

• The Income Test: This looks at what you earn from work and what your investments are "deemed" to earn.

3. Working While on the Pension Many retirees in Adelaide choose to keep working part-time. The Work Bonus is a fantastic incentive that allows you to earn a certain amount of income before your pension is impacted. It’s designed to help older Australians stay active in the workforce if they choose.

4. What if You Don't Qualify? Even if your assets are too high for the cash pension, you may still be eligible for the Commonwealth Seniors Health Card. This provides cheaper healthcare, discounted medicines, and various state-based concessions in South Australia.

Navigating Centrelink can be a headache, but it’s an essential part of your financial plan. We help you structure your affairs to ensure you are receiving every benefit you are entitled to.

Source: https://www.betashares.com.au/education/understanding-the-age-pension/

We invite you to give us a call on 08 7477 8252, to book an appointment to review your super.

General Advice Warning:

The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.