The Government Age Pension is a fortnightly Government payment designed to provide income support to older Australians who need to supplement their personal retirement savings.
Am I Eligible?
To be eligible for the Age Pension you must:
- Have reached Age Pension age (currently 66 or older, however the qualifying age will increase by 6 months every 2 years until the Age Pension age is 67 on 1 July 2023); and
- Be under the income test and asset test limits; and
- Have been an Australian resident for at least 10 years in total, although there are some exceptions to this.
How Much Will I Receive?
If you are eligible to receive the Age Pension, the amount that you’ll receive will depend on your income and assets test, and whether you are single or part of a couple. Information about payment rates is available on the Services Australia website.
If you are not eligible to receive a full or part Age Pension when you reach Age Pension age, you may qualify at a later stage if your income or assets decrease.
Does My Superannuation Impact The Age Pension?
While you’re under Age Pension age:
- Superannuation is not counted in the income and assets tests if you are not receiving a pension.
- If you are receiving pension payments from your super fund, these are considered to be an income stream. Different types of income streams have different effects on your assets test and income test – more information is available here.
- If you take money out of your superannuation account (including moving funds into a pension account in order to start a Transition to Retirement Pension or an Account-Based Pension), that amount will be treated as an asset and the income from it will be subject to deeming rules.
When you reach Age Pension age:
- Your superannuation is counted in both the assets test (the value is the balance on your latest statement) and in the income test under the deeming rules.
Note that the same rules apply to your partner and their super, even if they are not getting a payment from the Government.
Where to Find Further Information
- The Services Australia website has further detail on the Age Pension, including eligibility, payment rates and the application process.
- The Retirement Planner calculator on the MoneySmart website can estimate your annual income from your superannuation and the Age Pension.
- If you’d like to obtain financial advice to learn about strategies that may be of benefit to you with respect to the Age Pension and other Government benefits, please contact us to discuss how we can connect you with an independent faith-aligned financial advisor.
If you have any questions please contact our Member Care Team – we’re here to help.