Work bonus and part pension

YOURLifeChoices subscriber, Barbara, is trying to decide whether to continue working after becoming eligible for an Age Pension.

Q. Barbara
I was born in October 1946 so would have been eligible to take part in the Pension Bonus Scheme next year. I work casually and earn $36,000 p.a. Now that the PBS has been scrapped, what other alternative incentives are there for me to remain in the workforce. If I did claim part pension, how much would I get?

From 20 September 2009, the Pension Bonus Scheme is being replaced by the Work Bonus. Under the new arrangements, only half of the first $500 per fortnight will be included in the income test. Find out more.

With regards to how much part pension you would receive, this depends on:
·tthe assets you have
·thow much income you earn
·twhether you would be claiming the single or couple Age Pension.

YOURLifeChoices has a downloadable PDF, Who’s eligible for a pension? that explains how to calculate whether you will be eligible for a pension and how much you can expect to receive.

It should be noted that, in the wake of the May 2009 budget, the rate by which the Age Pension will be reduced, will increase from $0.40 to $0.50 for every dollar of assessable income above the pension threshold, from 20 September 2009.