By how much will my pension be reduced?

Peter would like to know how additional income will affect his Age Pension

Pension reduction, how much, part-time income, regular, earn, Age Pension, centrelink, payments, seniors

YOURLifeChoices subscriber Peter is currently receiving a full Age Pension but has been offered the chance to earn a regular, part-time income. He would like to know how this will affect the amount of Age Pension he receives.

Q. Peter
I am at present receiving a full Age Pension and I have the opportunity of some regular part-time work which would give me a gross income of approx. $600 - $700 per fortnight. I know that the Work Bonus would discount this by $250.00 per fortnight, but I am wondering how much pension I would receive taking into account the $350 - $450 I would be earning. Can you give me a ball park figure?

A. Your pension will be reduced by 50 cents in every dollar you earn over the allowable income limit. For example, if you are claiming a single Age Pension the current allowable income limit is $152 per fortnight. So if you were earning $350 per fortnight after the Work Bonus is deducted, your pension would be reduced by $99 per fortnight.

This is a rough calculation based on the information you have given and doesn't take into consideration your individual circumstances.  I would suggest that you contact Centrelink on 13 2300 and a customer service advisor will be able to give you more exact information.

Find out more about the Work Bonus.



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    COMMENTS

    To make a comment, please register or login
    brown owl
    12th Feb 2013
    4:02pm
    I have recently been granted a part age pension but with the price of shares rising at the moment i would like to sell some and maybe go on a holiday. when i try to contact centrelink i get all these recorded messages but i really want to speak to someone about the ramifications to my pension if I sell some shares. how do you get to speak to someone as they say it s up to an hour wait?
    AngelMamma
    12th Feb 2013
    4:59pm
    brown owl, I always ring first thing at 8.00am. I never ring at any other time. Even if you get a recorded time delay message stay on the line. As the phones only open at 8.00 the message can be wrong. You can also leave your phone no. etc and they will call you back in their own time tho. I have difficulty with the robot voice who asks questions and who doesn't always understand my needs so keep it short and very simple. Even if you end up at the wrong place, ask the operator to transfer you to where you need to be. It's frustrating I know but after a couple of times you realise exactly what to say to get to the operator. Good luck!
    Nan Norma
    12th Feb 2013
    5:08pm
    If you are not already aware, from 20 March 2013 the deeming rates will be

    2.5% (down from 3%) for financial investments up to $45,4000 for singles and $75,600 for couples
    And 4% (down from 4.5%) for balances over these amounts.

    This info came from Craig Emerson's MP this morning.
    Nan Norma
    31st Oct 2013
    8:23pm
    This is about to change again. It will be 2% and 3.5%. Not good if your asset tested.
    Earth mother
    12th Feb 2013
    6:12pm
    Whilst you may not feel like you are getting as much pension as y ou would like, it is always better financially (tax considerations aside) to earn as much as you can, from any source and settle for less pension. Quick addition will confirm
    nico
    20th Mar 2013
    6:37pm
    I married an Indonesian doctor in July 2012. I cam home to Perth in October and informed Centrelink Cannington. My single pension was cut to less than $1000/month.Despite numerous requests Centrelink have ignored my requests as they know I have a email address and I am in remote parts of Indonesia. My wife is on a very low salary; doctors here get a minimum rate of Rp2 million a month. Centrelink have hacked my allowance substantially more than this. I live on the borderline and need my pension so in desperation I seek your advice. Please help me/us.Thank you


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