Doug wonders if it is legal to claim two pensions while living overseas.
Q. Doug
Is it possible to get two pensions? If someone resides in Australia, receives a pension and would like to move back to their original country where there are no social security arrangements between the two countries, would it be possible to keep the Australian pension and receive the minimum support income pension from that other country?
A. It is possible to receive two pensions, but it is not possible to receive more than the full amount of the Age Pension in Australia, which I think is what you are hinting at.
This is because you may be confusing the social security arrangements between two countries as the right to report your income from all sources.
You need to report all your income to Centrelink when you are living overseas, just as you do when you are living in Australia. A social security arrangement does not exist for the two countries to communicate your financial situation, that responsibility still rests with you.
Centrelink will assess as income the pension you receive from the country where you choose to reside. And if this takes you over the income limit, your pension will be reduced by 50 cents for every dollar you exceed the limit.
For example, the current limit for couples combined is $336 per fortnight and for singles up to $190 per fortnight.
When you advise Centrelink of your income and assets from overseas, it will convert the value into Australian dollars. This means that there could be some fluctuation in the value of your payment because of the exchange rate.
Centrelink uses the buying rate from the Commonwealth Bank as the exchange rate for most currencies. For other currencies it uses the rates from other banks.
Centrelink will update your income details on the first of each month and apply this rate of income to your Age Pension payment.
It’s a good idea to register for a Centrelink online account through myGov before you leave Australia. That way you can access your letters and other services online while living overseas.
Do you draw two pensions? Why not share your experience in the comments section below?
Also read: Centrelink Q&A: When can I apply for the Age Pension