Super & the Age pension

 

The government’s Age Pension is designed to act as a safety net for retirees, providing for a basic standard of living for Australians who are most in need and unable to properly or fully fund their retirement.

 

Figures provided by the Department of Human Services (formerly Centrelink) indicate the maximum Age Pension entitlement (including supplements) as at January 2017 is:

  • $877.10 per fortnight (or $22,804 per year) for a single person
  • $1,322.40 per fortnight (or $34,382 per year) for a couple.

While the Age Pension may be a factor for many people in their retirement planning, you may not want to rely on the Age Pension alone to fund for your retirement – it’s worth considering these aspects when planning your financial future.

See how these Age Pension figures compare to industry estimates of a budget for a ‘comfortable’ standard of living in retirement.

 

Eligibility for the Age Pension

There are limitations on eligibility for the Age Pension, most commonly based on your age, residency status, the amount of income you receive as a retiree and the value of assets that you hold.

A quick overview of this information is provided for general information below, but it’s important that you refer to the Department of Human Services for more details and the most up-to-date information about the Age Pension before finalising any decisions.

 

Date of birth

Age Pension age

Before 1 July 1952

65 years

1 July 1952 to 31 December 1953

65 years and 6 months

1 January 1954 to 30 June 1955

66 years

1 July 1955 to 31 December 1956

66 years and 6 months

From 1 January 1957

67 years

Residency requirements

To be eligible for Age Pension you must satisfy residence requirements, which means on the day you submit your claim, you must be an Australian resident and physically present in Australia. You also need to have been an Australian resident for a continuous period of at least 10 years, or for a number of periods that total more than 10 years with one of the periods being at least 5 years (although some exceptions do apply).

Income and assets test for eligibility

The amount of income you may be receiving from other sources and the value of assets you own can affect the amount of payment you receive as an Age Pension. As part of determining if you qualify for a full or partial Age Pension, you’ll need to satisfy an income test and an assets test. You can find out more about these tests from the Department of Human Services.

 

More useful links from Department of Human Services

  • Online estimator of the amount of Age Pension you may be able to get and compare other payments you may be eligible for

 

Other useful resources

    Super and the Age Pension

    Find out more about how the Age Pension complements super, and what you could be eligible for. (Source: ASFA Super Guru)

    Super and pension age calculator

    Try this calculator to see when you can access your super and when you can apply for the age pension. (Source: ASIC MoneySmart)