A number of factors will play a part in determining whether you’re eligible for a full, part, or no Age Pension. Find out what they are.
The money you use to fund your life in retirement may come from a range of different sources, which might include super, investments, savings, an inheritance or government benefits, such as the Age Pension.
If you’re keen to know whether you’re eligible for the Age Pension and how much you could get, read on.
Am I eligible?
Your eligibility for the Age Pension will generally come down to three things.
1. Your age
The age you qualify for the Age Pension will be between 65 and 67, depending on your date of birth. Check out the table below to see what age you might qualify.
|Date of birth
||Age Pension eligibility age
|Before 1 July 1952
|1 July 1952 - 31 December 1953
||65 and a half
|1 January 1954 - 30 June 1955
|1 July 1955 - 31 December 1956||66 and a half|
|From 1 January 1957||67|
Tip – the age you can access your super and the age you’ll be eligible for the Age Pension won’t necessarily be the same. Generally, you can access your super savings first.
2. Your residency
To receive the Age Pension, you must be an Australian resident and physically present in the country on the day you submit your claim.
You also must have lived in Australia for at least 10 years and continuously, for at least five of those years.
3. Your income and assets
If you’re the right age and meet residency requirements, you’ll then need to fill out an income and assets form for Centrelink.
Centrelink will then assess your income and assets to determine whether you’re eligible for a full, part, or no Age Pension.
How does the income and assets test work?
To be eligible for the Age Pension, you must have income and assets under certain limits. Below we look at some of the things that are taken into consideration and what the income and asset cut-off points are.
The income test
Centrelink will consider all sources of income, including that which you might receive outside of Australia, as part of its assessment. This may include income from:
- super and retirement pensions.
It doesn’t include things like:
- rental assistance payments
- payments through a National Disability Insurance Scheme package
- emergency relief payments
- regular payments from a close relative.
Check out the Services Australia website to find out more about assessable income.
Income cut-off points for the Age Pension
You need to have income lower than the below amounts (per fortnight) to be eligible for any form of Age Pension1.
||Income cut off point
|A couple living together||$3,192.40 combined|
|A couple living apart due to ill health||$4,130.80 combined|
Tip – your cut off point will be higher if you get the Work Bonus. Note, the Work Bonus reduces the amount of employment or eligible self-employment income that Centrelink applies to your rate of pension entitlement under the income test2.
Asset cut off points for the Age Pension
When your assets are more than the limit for your situation below, your Age Pension will reduce3.
|A couple combined||$405,000||$621,500|
|A couple (separated due to illness) combined||$405,000||$621,500|
|A couple (one partner eligible) combined||$405,000||$621,500|
If your assets are above the below figures, you won’t be eligible for any Age Pension4.
|A couple, combined||$884,000||$1,100,500|
|A couple (separated due to illness) combined||$1,040,500||$1,257,000
|A couple (one partner eligible) combined||$884,000||$1,100,500|
How much does the Age Pension pay?
The standard rate for Age Pension payments will come down to whether you have income and assets below certain levels and if you’re single or part of a couple.
To give you a bit of an idea, the amounts below are the maximum rates5 currently being paid each fortnight and annually to those who are eligible for a full Age Pension (includes supplements).
||Full Age Pension rate fortnightly
||Full Age Pension rate annually
Age Pension rates are adjusted throughout the year, so these figures could change.
Where to go for more information?
Planning for retirement and working out your entitlements isn’t always straightforward. Contact Services Australia or your financial adviser to figure out what you’re eligible for. If you don’t have an adviser, click here to find one that suits your needs.
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Any advice and information is provided by AWM Services Pty Ltd ABN 15 139 353 496, AFSL No. 366121 (AWM Services) and is general in nature. It hasn’t taken your financial or personal circumstances into account.
The retirement health check is a general advice conversation only. It is provided by AWM Services Limited (AWM Services) ABN 15 139 353 496, AFS Licence No. 366121 (AWMS) to eligible members of the AMP Super Fund. AWM Services is a wholly-owned subsidiary of AMP.
It’s important to consider your particular circumstances and read the relevant product disclosure statement, Target Market Determination or or terms and conditions, available from AMP at amp.com.au, or by calling 131 267, before deciding what’s right for you.
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