By how much will my pension be reduced?

YOURLifeChoices subscriber Peter is currently receiving a full Age Pension but has been offered the chance to earn a regular, part-time income. He would like to know how this will affect the amount of Age Pension he receives.

Q. Peter
I am at present receiving a full Age Pension and I have the opportunity of some regular part-time work which would give me a gross income of approx. $600 - $700 per fortnight. I know that the Work Bonus would discount this by $250.00 per fortnight but I am wondering how much pension I would receive taking into account the $350 - $450 I would be earning. Can you give me a ball park figure?

A. Your pension will be reduced by 50 cents in every dollar you earn over the allowable income limit. For example, if you are claiming a single Age Pension the current allowable income limit is $150 per fortnight. So if you were earning $350 per fortnight after the Work Bonus is deducted, your pension would be reduced by $100 per fortnight.

This is a rough calculation based on the information you have given and doesn't take into consideration your individual circumstances.  I would suggest that you contact Centrelink on 13 2300 and a customer service advisor will be able to give you more exact information.

It is also worth noting that the Work Bonus changed on 1 July 2011 to allow those on an Age Pension to ‘bank’ any unused fortnightly Work Bonus to a maximum of $6,500. This means that those earning an irregular income may be able to continue to claim a full Age Pension.