Trish is having difficulty understanding how much Age Pension she’ll receive and whether it will be enough to fund her retirement.
I need someone to explain how much Age Pension I am entitled to when I reach 65 years of age, which will be in November. I am working just under 19 hours per week and find it extremely difficult to make ends meet. Please fill me in on any information which I can use to work out what I can expect to receive and secure my financial future in retirement. I found it difficult to understand the information provided on the Centrelink website.
A. Assuming you meet all the eligibility criteria for the Age Pension, the amount you receive is assessed under both the income and the asset test and you will be paid the lower amount of the two assessments.
You can find details of the current asset limits here and for every $1000 you are over the eligibility threshold for a full Age Pension, your pension payment will be reduced by $1.50.
The income assessment is slightly different as the first $250 per fortnight of any income derived from employment is excluded from the income test under the Work Bonus. You can view the current income limits here and for every dollar of income you exceed the threshold for the full Age Pension, your pension payment is reduced by 50 cents.
It is also worth noting that these limits and amounts are correct at the present time but they are reviewed periodically. To view the current Age Pension payment rates, click here.
You may find our eGuide, Your retirement and the Age Pension, a useful tool to help you work out your entitlements.