Work bonus – Should I continue working after pension age?

YOURLifeChoices subscriber Tom wants to know if the work bonus makes it worthwhile continuing to work after pension age.

The rate at which a pension is withdrawn is 50 cents per dollar income above the free area (currently $146). However, under the Work Bonus arrangements, only half of the first $500 of fortnightly employment income will be included in the income test. This means that as a person’s employment income increases their pension will reduce at half the rate it otherwise would have. Pensioners can get a maximum benefit of $125 per fortnight under the Work Bonus.

For more information on the work Bonus and changes to the Pension Bonus Scheme, visit the Australian Government.