1st Feb 2011

Will I lose my Pension Bonus?

Many Australians take advantage of the Pension Bonus Scheme to supplement their retirement income. YOURLifeChoices subscriber, Fred would like to know if he has to pay back any of this bonus should he return to work.

Q. Fred
I am now ready to retire on my 70th birthday when I will claim the Age Pension and my full entitlement payout of the Pension Bonus Scheme. If I change my status and decide to take on 'full time' employment, say within 12 months after my retirement, I understand that I will lose my Age Pension entitlement. But would I have to repay some of my Pension Bonus Scheme payout as well?

A. Provided by Centrelink
If you return to work and your earnings are over the income threshold, then you will lose your Age Pension payments or your pension will be reduced accordingly. However, the good news is that you will not have to repay any of your Pension Bonus Scheme payout back to Centrelink

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