YOURLifeChoices subscriber, Barbara, reaches Age Pension age next year but wants to carry on working. She is keen to find out how much part-pension she will receive.
Next year I would have been eligible for the bonus scheme, which has now been scrapped. I currently work casually, earning around $35,000 p.a. Does this mean I continue to work with no added incentives to do so, or am I able to claim part pension (and how much would I be eligible for?) I was born in October 1946. I really don’t understand what this new change means and would be pleased if you could explain it to me in more detail.
A. Barbara, the Pension Bonus Scheme was closed to new entrants on 20 September 2009. However, for those who qualify for the Age Pension after this date and continue to work, the new Work Bonus can help reduce the assessed amount of income, making qualifying for a part pension possible.
Under the Work Bonus scheme, half of the first $500 earned per fortnight is not assessed as income. Therefore, up to $250 per fortnight is discounted from your assessed income. Click YOURLifeChoices link to find out more about the Work Bonus.
To qualify for a full pension, your income needs to fall below $146 per fortnight if you are single. If you earn above this amount, you may qualify for a part pension if your fortnightly earnings are less than $1548.20. For each dollar you earn above $146 per fortnight, your pension will be reduced by 50 cents. Click YOURLifeChoices link to find out more about income limits.
Any assets you hold will also determine your eligibility for the Age Pension. Click YOURLifeChoices link to find out more about asset limits.
Individual circumstances can have an influence on whether you qualify for the Age Pension and we would suggest you discuss your circumstances with a Centrelink Financial Information Services Officer. You can make an appointment by calling 13 2300.