Age Pension Made Simple

Around 80% of retirees in Australia receive a full or part-Age Pension, and the Age Pension remains a vital component in nearly every Australian’s retirement plans. 

A new book called Age Pension Made Simple by Trish Power is your must have guide to navigating the Age Pension, whether you’re single or married, and includes all the latest government changes plus free online updates to ensure that you receive what you’re entitled to. Most importantly, Trish dissects the facts and figures in an easy to understand style than anyone can comprehend, regardless of your financial background.

Trish Power is the co-founder and publisher of SuperGuide.com.au and she is passionately committed to raising the level of financial literacy in Australia…she’s on the line to talk about her book The Age Pension Made Simple.

Here are some things to consider about the Age Pension

1. A single person receiving the FULL Age Pension, can expect roughly $23,100 a year, while a couple can expect roughly $34,820. You can also receive a PART Age Pension, which is based on an income test and an assets test.
2. You need to work out your Age Pension age. If you were born after December 1956, then you are eligible to apply for the Age Pension from the age of 67, which is known as your Age Pension age. If you were born before July 1952, your Age Pension age is 65 years. Anyone born after June 1952 and before January 1957 has an Age Pension age of 65.5 years, or 66 years, or 66.5 years.
3. Are you an Australian resident? You must be an Australian resident for at least 10 years, or satisfy one the residency exceptions, such as having lived (or worked) in a country that has a social security agreement with Australia.
4. Have you met the income test and the assets test? An eligible individual must satisfy the Age Pension income and the Age Pension assets test, to receive a FULL or PART Age Pension. The amount of Age Pension will be based on the test that delivers the lowest amount of Age Pension entitlement. If you fail one or both of the tests, you will not be eligible for the Age Pension.
5. Your home is exempt from the Age Pension tests, that is, it is not counted against the assets test.
6. The Age Pension thresholds for the income test and assets test are adjusted at least once a year, and for part-Age Pensioners, adjusted 3 times a year, which means that even if a person does not pass the income and assets test at one point, they may become eligible at a later date.
7. You can expect a PART Age pension in retirement at a minimum, UNLESS, as a couple, you own more than $821,500 in assets (in addition to your home) or you receive income greater than $77,000 a year.
8. As a single person, you can expect a PART Age pension in retirement at a minimum, UNLESS you own more than $546,250 in assets (in addition to your home) or you receive income greater than $50,000 a year.
9. Age Pensioners who are renting can own more assets and earn more income before losing Age Pension benefits.
10. You must actively apply for the Age Pension, it is not an automatic benefit.
11. Note that your household belongings, including your car, are counted as assets for the purposes of the Age Pension assets test.
12. If you choose to work, while receiving the Age Pension, you may be entitled to a Work Bonus – if you earn more than $250 in a fortnight from employment income, then your assessable employment income for the Age Pension income test will be reduced by $250 a fortnight.
13. If you hold financial assets, such as superannuation or share investments, the government will assume a specified rate of return as income, and assess that ‘deemed income’ against the Age Pension income test.

If you'd like more information about Trish and her book head to SuperGuide.com.au 

Click here to listen to the interview