In this guide
Key points about Age Pension
- Current rate: The full rate of Age Pension is $1,200.90 per fortnight for a single person and $905.20 per fortnight (each) for a couple.
- Elibility: To receive Age Pension you must be aged 67+, meet the residence requirements, and be entitled to a payment higher than zero under both the income and assets tests.
- Current thresholds for a full Age Pension: A single person can have assets up to $333,000 (or $600,000 if they don’t own a home) and income up to $226 a fortnight before the Age Pension begins to reduce. A couple living together can have combined assets up to $499,000 (or $766,000 if they don’t own a home) and combined income up to $396 a fortnight.
- Current thresholds for a partial Age Pension: A single person can have assets up to $733,500 (or $1,000,500 if they don’t own a home) and income up to $2,627.80 a fortnight before the Age Pension reduces to zero. A couple living together can have combined assets up to $1,102,500 (or $1,369,500 if they don’t own a home) and combined income up to $4,016.80 a fortnight.
- Tax treatment: The Age Pension is a taxable payment but if it’s your only taxable income and no tax has been withheld, you don’t generally need to submit a tax return.
We’ve all heard of the horror stories of people waiting longer than six months for their Age Pension claims to be processed by Centrelink.
When you submit an Age Pension claim you’re joining a queue a mile long and getting it right the first time can save an incredible amount of time and frustration.
This article is a step-by-step guide to claiming the Age Pension and getting it right the first time.
Note
While many Australians refer to it as the ‘Aged Pension’, the official name is the Age Pension.
The Age Pension also shouldn’t be confused with an account-based pension that you receive from your superannuation.
First – a little background
Not everyone will be entitled to a full Age Pension; some will only be entitled to a part pension. Our social security system is designed to act like a safety net (the more you have, the less you’ll get).
As your rate of payment will be determined based on your means (income and assets), you are required to provide Centrelink with evidence of your financial situation as part of the claim process.
Getting this evidence together is time consuming, but it avoids lengthy delays with requests for more information.
Note
The Age Pension age increased to 67 years from 1 July 2023. You also need to pass the Age Pension residency rules.
Read more about whether you may be eligible for the Age Pension or find out how much pension you may be eligible for with our Age Pension calculator.
When can you claim for the Age Pension?
You are able to claim for the Age Pension 13 weeks prior to turning Age Pension age; however, this may not always be the best option. The best timing of your claim submission will depend on whether you’re still working, have any upcoming overseas travel and if you have structured your assets to maximise entitlements already.
If you submit your claim on the day you turn Age Pension age, in most cases you’ll be waiting between two weeks and two months to be paid. The caveat to this is that you have provided all the necessary documentation to support your claim in the format that Centrelink demands (they are pedantic about the supporting evidence – we’ll go into this later).
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