The question just about everyone asks when approaching retirement is whether or not they will qualify for the Age Pension. Several factors are assessed by Human Services when determining your eligibility, which we’ve outlined below.
Qualification age
The current qualification age for the Age Pension is 65 years for men and women. From?1 July 2017, this will increase by six month every two years, until it reaches 67 by 1 July 2023.
You can use this table to calculate when you will be eligible to claim for an Age Pension:
|
Date of Birth |
Qualifying age at |
|
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 |
When claiming the Age Pension, you must be present in the country and must have lived in Australia as a resident for a continuous period of 10 years, or for several periods, that total over 10 years, which is to include a continuous period of five years. However, there are certain exemptions. You can find out more at Humanservices.gov.au
Assessment of income and assets
Centrelink will apply both an income and asset test to determine the amount of Age Pension you will receive. You will receive the lesser amount derived from these two tests and should either of them result in a $0 payment, then you will not qualify for an Age Pension.
Income test
Currently you can earn $162 per fortnight for singles before your Age Pension is affected. If you chose?to work past Age Pension age, the Work Bonus will be applied and $250 of income from wages will be excluded from assessment. Your Age Pension is reduced by 50 cents for every dollar you exceed the threshold until your payment reaches $0. Find out full details of income thresholds.
Asset test
There are certain exemptions from the asset test, such as your main residence if owned by you. The current asset disqualification limits for a single, full Age Pension applicant are $205,500 for a homeowner and $354,500 for a non-homeowner. Find out full details of asset thresholds.
