Sandra is retiring with 16 weeks of long service leave and is worried about her pension.
Sandra is retiring with 16 weeks of long service leave and wants to know how this will affect her pension.
I am retiring with 16 weeks of long service leave. I understand that this will now affect my pension. Is this correct?
A. As you are retiring and not being retrenched, any long service leave you are due will not impact when you can claim for the Age Pension – that is, you will not have to wait until this is spent before you can claim.
However, if this is paid as a lump sum, what you do with that lump sum may affect the rate of Age Pension you receive once the income and asset test has been applied.
You can find out more about the income and asset test by reading ‘Income and asset tests’.
Before making any decisions, I think it would be worthwhile to make an appointment to see an independent financial advisor so you can maximise your income options in retirement.
If you have a Centrelink question, please send it to [email protected] and we’ll do our best to answer it for you.
Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.
Join YOURLifeChoices, it’s free
- Receive our daily enewsletter
- Enter competitions
- Comment on articles