How do super pensions affect the Age Pension?

Ellenora is considering upping the amount of pension she receives from her super.

super money

Ellenora is considering upping the amount of pension she receives from her super, but is wondering how this will affect her Age Pension.

Q. Ellenora
I am in receipt of my super pension of $2500 a month.  I am 70, plus I receive an Age Pension of around $560 a fortnight.

I want to increase my super pension to $3000. How will this affect my Age Pension? 

A. Once you have reached Age Pension eligibility age, which you have, superannuation or an associated income stream is assessed under the income and the asset tests. Under the asset test, it's the amount you hold in super or have used to purchase an income stream that is assessed. Under the income test, it's the amount of income deemed to be earned, not the actual income, that is assessed.

You may therefore find that by purchasing another income stream to increase your monthly pension payment, the amount that is assessed under the income and asset tests will not actually change, and therefore your Age Pension payment may remain roughly the same. It will depend upon the resulting lower amount of payment (from Centrelink) once the income and asset test has been applied, as the lower amount is what you will be paid.

I would suggest speaking to your super fund or a Centrelink Financial Services officer to confirm your personal circumstances.



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    30th Oct 2017
    Every one needs to look at Bitcoin to retire early..
    Pass the Ductape
    30th Oct 2017
    Only works if you hang on to every bit of coin you get!
    30th Oct 2017
    Doubling about every 4 Mths
    Pass the Ductape
    30th Oct 2017
    So here we go again! It wasn't a hard question. Contact a Centrelink Financial Services Officer..... really?
    Has anyone at Your Life Choices taken notice lately of the TV shows which condemn the time wasted on the phone waiting for one of these Centrelink people - or the number of times people who simply give up - and hang up?
    30th Oct 2017
    Bloody confusing answer which made no sense to me, scarey stuff this retirement & pensions. I think I'll jus lay down & die (like the govt wants me to) before I reach eligible age as it is all too hard for me to work out (prob why they make it so hard to understand so many WILL just give up & politicians can pocket the money saved to go to their own pensions) Whole system seems so unfair to oldies anyway!
    30th Oct 2017
    Everything to do with pensions and super is convoluted, Cheezil61, and the reason is simple - governments want you to shell out to private financial advisers (after you get jack of its own - Centrelink's - financial advisers). Every year I pay $250 to an accountant to prepare my tax return. It's a mega-simple return, but it drives me crazy trying to work out one particular number: how much of the money I pay into my accumulation super account do I need to use as a tax deduction in order to minimise my income tax.
    30th Oct 2017
    Yep, agree with Cheez...
    Its done with smoke and mirrors to divide and confuse, thus many miss out on their rightful pension amounts, winner is the govt and the pollies with their extreme perks etc etc
    30th Oct 2017
    I would like to know how anyone can get a super pension of $2500 or $3000 a month and still qualify for a Centrelink pension of $560 a fortnight.

    Has this been assessed under the assets or the income test ?

    Am I missing something here ?
    30th Oct 2017
    A single person can receive $1956.80 per fortnight and still get a part aged pension. Also, if the super pension commenced before 1 January 2015, under grandfathered rules it is not counted as income as there is a deduction applied representing a return of your capital. This is the rule likely applicable in this case as she is 70. She could draw as much as she wanted with nil affect to the OAP

    There are so many anomalies, grandfathered rules, rules for asset tests, rules for income tests, rules for defined benefit pensions vs income streams that really each individual must ask Centrelink which rules apply to them. A nightmare which needs a complete overhaul in my opinion
    30th Oct 2017
    Thanks Sundays. It must be the grandfathering provisions you mentioned.

    I did understand that you can receive $1956.79 and still receive the minimum OAP of $49.80 (Energy Supp + min Pension Supp) but certainly nowhere near $560.
    30th Oct 2017
    Yes, it’s granfathered providing you don’t cease getting the OAP, or start a new income stream. Taking extra from an existing super account existing before 1/1/15 sees no penalty applied
    30th Oct 2017
    Yes I was confused by that, $2500 is more than the pension for a start. Then add $560 a fortnight which is a lot of money for one person to live on. Then someone said as well that someone on nearly $2000 could get benefits. $1000 a week is a lot for one person.
    Am I missing something?
    A pensioner couple is living on less than $700 a week altogether and managing well in most cases.
    The more we earn the more we spend?
    30th Oct 2017
    I get that amount in Super pension, and when Abbott and Hockey got in they chopped me off the part Aged-pension I was on and scuttled my benefits as well. Despite saying before the election "No change to Aged Pensions" - LIARS! BUT I do own a small home unit that I live in, so am classed as a "homeowner"! And I did get my benefits restored on October 9 (well, most of them, anyway!) I think they provide the least benefit they can get away with (while increasing their own incomes and perks, of course!, and they only restored benefits to the 300,000 people chopped off benefits because they guessed that we wouldn't vote them back in (good guess!) Be careful with advice on this matter, Centrelink can come after you some years later if you make an error unfavourable to them!
    30th Oct 2017
    A single person can receive $1956.80 per fortnight and still get a part aged pension
    What is that part pension. Is it more then $1 per fortnight ??
    30th Oct 2017
    Actually Johnp $1956.80 is when the part OAP stops or if you like you get $0 per fortnight. Anything less than that entitles you to some pension.
    If the calculation is greater than $0 and less than or equal to $49.80 then you get $49.80, which is the minimum amount you can get.

    The minimum consists of the Energy Supplement of $14.10 plus the minimum Pension supplement of $35.70
    6th Nov 2017
    So if someone earns $1950 a fortnight, they get $49.80 from Centrelink? That’s insane.
    30th Oct 2017
    Thank goodness I don't have any income streams other than Centrelink.

    30th Oct 2017
    the balance in your pensioned will be "deemed" to work out your income, not the actual income stream.
    So no impact in my humble opinion

    Withdraw it and spend !!!
    2nd Nov 2017
    Unless it is kept in accumulation mode and then it isn't counted.

    Thousands of wealthy people arrange their affairs so their money remains in the uncounted accumulation fund.

    They can then access the OAP and concessions.

    This loop hole is ignored by centrelink and the MSM.
    7th Nov 2017
    Now I am totally confused

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