How do you know if you’re eligible for the Pension Bonus?
Although closed to new entrants in September 2009, the Pension Bonus Scheme is still a useful way to boost your retirement income, but how do you know if you’re eligible?
Can you please let me know what the go is with my husband’s retirement? He was born 22/10/1946 and at this stage, he still wants to work until he’s 70. He was told by one of the guys at work that he can put forward an intention to claim the Pension Bonus by working until that age. When I looked up the Centrelink page it tells me that if he’s intending to put in a claim, he has to have reached retirement age before 20 September 2009. I’m not sure what age is retirement age for men, so couldn’t understand whether he would be eligible or not. Can you clear up my misunderstanding of all this legal banter as every time I read something put out by the Government is always seems contradictory to me?
A. As your husband did not reach retirement age (65) before 20 September 2009, he is not eligible for the Pension Bonus Scheme, as it closed to new members not of retirement age on that date. For those who have reached Age pension age by this date, you can still register your intent to claim, but must do so before 1 March 2014.
However, should your husband choose to work past retirement age, he can claim the Work Bonus. This means that the first $250 per fortnight of any income he receives is not assessed and may therefore mean that he qualifies for a part Age Pension while still working. He does not need to make a claim for the Work Bonus, as this will be factored into his payments when he reports his fortnightly income, which he will be required to do when claiming the Age Pension. You can view the current income limits here.
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