Age Pension – will I get a lump sum payment?

Is Martin entitled to an extra payment from Centrelink when he retires?

Yellow folder with pension with papers and calculator

Martin is planning on retiring soon and someone has mentioned that since he has worked until he’s 70, he may get an extra payment. Is this the case?

Q. Martin

I am over 70 and still working. I need to know that when I retire and apply for the Age Pension, will I get any further entitlements for working beyond the age of 65? I haven’t received any other previous payments or a work bonus scheme.

I did hear from a good source that my Age Pension would have a certain percentage increase. Is this true? 

A. I believe the scheme you have been told about is the Pension Bonus Scheme for which you had to register prior to 1 July 2014. Those who registered for the scheme before this date did, or will when they stop work, receive a lump sum payment in addition to the Age Pension.

Unfortunately, if you haven’t registered already, you will not receive the bonus, but if you wish to find out more about how the scheme worked, you can find out more by from our article ‘Claiming the pension bonus’.

As you may be aware, the Pension Bonus Scheme was replaced by the Work Bonus, under which the first $250 of any money earned from employment is excluded from the income test. Depending on your financial situation, you may be able to claim and Age Pension while continuing to work.





    COMMENTS

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    RosePerth
    14th Mar 2016
    12:08pm
    You had to register for the Pension Bonus before you retired and were eligible for a lump sum for each year you worked up to five years from your retirement eligibility date. If you dropped to part time and claimed you only received the percentage of bonus to your hours worked. This pension bonus scheme stopped before 2014. If you were already registered for it before it ceased you will still receive your payment when you retire.
    Hairy
    14th Mar 2016
    3:38pm
    Centrelink are great at keeping secrets from welfare recipients.its no good printing a booklet because the gov change the rules every week.its a disgusting way to treat seniors.
    RosePerth
    14th Mar 2016
    4:57pm
    They didn't exactly hide the Pension Bonus Scheme, they just didn't publicise it. I found out about it from a friend in the same age bracket as myself. She, in turn, found out about it from a financial adviser.
    older&wiser
    14th Mar 2016
    10:09pm
    One reason the govt canned this Bonus, was because they said it hadn't proved popular enough. That was because they didn't publish it, so that people knew about it!! I know a few people who got the full bonus, and it has made a huge difference to their lives. Now, there is not a single incentive for over 65's to continue working. If the Bonus Scheme was still around, I would definitely work longer.
    Roxy
    14th Mar 2016
    4:45pm
    The Pension Bonus scheme ended on 19/9/2009. The registration to become a member of the scheme ended on 30/6/2014 at which time you needed to be Age pension age by 19/9/2009. For those that were eligible and did register to be a member of the scheme and continued working they should contact Centrelink to discuss with a Financial Information Officer regarding any possible eligibility in the future.
    RosePerth
    14th Mar 2016
    4:54pm
    I may well have my dates wrong but I retired in 2013 after 7 years of being registered for the Bonus scheme and received the full lump sum at that time. What they didn't make clear was the fact that if I reduced my hours I would only get a reduced bonus even though I had "served my time". In effect, I had to retire fully, which I did. Those still enrolled in this scheme and yet to retire and collect need to be aware of this part time fact that can reduce their lump sum considerably.
    Owl
    14th Mar 2016
    6:34pm
    What I was not told when I enrolled for the Pension Bonus 7 years ago, which is hidden away NOW in the fine print, is that the payout is directly linked proportionately with the percentage of pension you are assessed at on retirement. So, unless one is eligible for a full pension the Pension Bonus payment at that time will be reduced accordingly. Which sucks! I have yet to retire and am in my 71st year. Let's get rid of this government and hope the replacement proves better.
    particolor
    14th Mar 2016
    8:45pm
    I wish all the people Hoping for Better WELL ! :-) :-)
    paxpax
    14th Mar 2016
    7:31pm
    All you lot who get pensions are lucky. We are not eligible for one red cent because we scrimped and saved when we were working and get diddly squat. We pay full price for all services. Not happy Malcolm!!!
    niemakawa
    15th Mar 2016
    4:19am
    There should be a basic pension for all, regardless of income or assets. It is pure discrimination by The Government for you and others in the same situation. At the very least you should be entitled to a Health Card. So many who have squandered over the years and now cry poor and want to fleece those that made sacrifices and save d for a better retirement.
    Rae
    15th Mar 2016
    8:22am
    Don't worry paxpax our displeasure will make itself known at the ballot box and in our choices of what we do with the money we have.
    Blossom
    15th Mar 2016
    5:18pm
    I am in the same situation as you, scrimped and saved. I never knew if I was suddenly going to have things breakdown and it be cheaper to buy new because of spare parts and labor costs.e.g. In one day my Mum's car blew some fuses, the water softener spat the dummy and sent salt water all over our backyard lawn and our dog became very ill and had to be "put to sleep" A few weeks later our Hot Water System broke down and decided to boil, spewing boiling water on the same section of lawn as the water softener had.
    I put extra savings into Super, sold the family home as I was by then alone and have medical issues and moved into a retirement village. I paid extra tax on money I saved before I found out I could put it in Super. I live on my Super. Like you I pay top dollar on everything. I had to have what was thought could be urgent -a chest xray at a private radiologist. Bill was $110.10 Medicare refunded me $40.10 They said Medicare know how to get away with it. I personally reckon the Radiologist is ripping people off. I like you, pay extra on medication. I can't even get a health care card to save on medication.
    Basically we are not encouraged to save as we are penalised later in life.
    particolor
    15th Mar 2016
    5:34pm
    You've noticed that now too have You :-(
    niemakawa
    15th Mar 2016
    5:44pm
    As I mentioned earlier it is only right that all those of pension age should receive a basic pension. I do receive a part one. I believe an injustice is being done to those like yourself, Rae and Blossom. You all worked hard, saved for a better retirement more than likely paid high personal taxes, yet now you are being penalised for your thrift. Totally unfair and discriminating.
    Anonymous
    17th Mar 2016
    2:09am
    In Holland, with a population of 17 million, everyone gets a pension and it is not means tested. Why can't Australia with 25 million put in place a similar system, do away with superannuation and means tested pensions???
    Jolly
    1st Apr 2016
    11:34am
    I applied for a UK State Pension. I would not get much as I was only working for about 6 years before I came to Australia. But I can purchase units to lift it up. But it is too much. Anyway in Britain everybody pays for their pension. From the day you start work your employer takes from your pay a certain amount to go towards your pension. After 30 years of working you are entitled to a State Pension. You may also work and the pension is not restricted. So why wouldn't the useless governments we have had in Australia brought in something like that. They could start now instead of giving the money to the Super companies. Oh wait a minute Industry Funds have Union men on their Boards and the Retail Funds have LNP backers on their Boards. Well maybe it was a sort of "thought bubble". So to quote a well known phrase "We are stuffed".
    particolor
    14th Mar 2016
    8:47pm
    I had No Hope !! :-( You get Turfed out of a Government job at 65 !! :-(
    Unless your a Blue Blood ! And Entitled !
    Not Senile Yet!
    15th Mar 2016
    2:28am
    NO NO NO NO NO!!!!
    No more Lump Sums for anyone.
    Who do you think you are....spending YOUR money as you WISH????
    No No No NO!!!!
    We vill legislate against it!!!!!
    Ve Vill make sure that you can only access what we say.....cos we can!!!!
    As for the Pension Bonus Scheme.....who told you about that?
    It was a secret! Tell who told you.....we vill have them removed immediately!!!
    What's that???
    Oh thank God!!!!
    Yes.. I have just been informed that that scheme is no longer in existence....it was past it's use by date!!!!
    What was your question????
    No Dear....I am sorry....no Aged Pensions now until your Seventy!!!
    What...you lost your job......oh well....we still have the Dole!!!!
    niemakawa
    15th Mar 2016
    4:20am
    Only the so-called poor get bonuses these days.
    particolor
    15th Mar 2016
    4:45pm
    Cant wait for the 2 Buck pension Rise on the 17th ! :-) :-)
    Rae
    15th Mar 2016
    8:19am
    I wonder how much the administration of this fiasco cost us. I'll bet it was more than was ever paid out to any pensioner as a bonus.
    RosePerth
    15th Mar 2016
    9:45am
    It probably saved a fair amount of pension that would have been paid to those who registered for it. The incentive was to continue working for the maximum five years after retirement. The lump sum after five years was approximately half of what you would have got as a full pension.


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