Retirement

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Do I qualify for the Age Pension?

The Age Pension administered by Centrelink is currently an important source of retirement income and benefits for the majority of Australians. Many older Australians, rely on the Age Pension as their only source of income.

1. Qualifying age

The minimum age for a man to qualify for an Age Pension is currently 65. The qualifying age for women is currently staggered, but increasing to age 65.

The scale of qualifying ages for women born from 1 January 1943 onwards is set out below. For qualifying ages for women born before January 1943, please go to centerlink.gov.au.

Date of birth Qualifying age women Qualifying age men
1/1/1943 to 30/6/1944 63 years 65 years
1/7/1944 to 31/12/1945 63 years and 6 months 65 years
1/1/1946 to 30/6/1947 64 years 65 years
1/7/1947 to 31/12/1948 64 years and 6 months 65 years
From 1/1/1949 65 years 65 years


The qualifying age for both men and women will gradually increase to age 67 in 2023. The transition will not commence until July 2017 when the qualifying age will increase by 6 months every 2 years:

Qualification age for both men and women
 Start date Date of birth  Qualifying age 
 1 July 2017 1/7/1952 to 31/12/1953   65 years and 6 months
 1 July 2019 1/1/1954 to 30/6/1955   66 years
 1 July 2021 1/7/1955 to 31/12/1956   66 years and 6 months
 1 July 2023  From 1/1/1957  67 years

2. Qualifying for the Age Pension

To qualify for Age Pension, you must satisfy the age and residency requirements (see centrelink.gov.au). The Pension payable is dependent on your income and assets tests.

3. Income and Assets Test

Centrelink assesses pension applicants using both an income and an assets test. If both tests affect pension eligibility and one reduces the pension payable more than the other, the test resulting in the lower benefit is applied.

Income Test

The income you and your partner receive may affect the Age Pension amount. Assessable income includes some of the following: personal earnings (wages, salaries & bonuses), employment income salary sacrificed to superannuation, deemed income on bank accounts, shares, managed funds and superannuation if over Age Pension age, as well as the 'assessable' portion of super income streams.

Assessable Assets Test

These assets include any property (except your primary home) or possessions owned or partly owned in or outside Australia.

Exempt assets

Some of the assets that are excluded from the assets test are:

  • your own home
  • any prepaid funeral arrangements (or funeral bonds within certain limits)
  • if your partner is under Age Pension age, any assets they have in superannuation and rollover funds (i.e. they are not receiving a super income stream)
  • certain complying income streams (such as Term Allocated Pensions) can be exempt from the asset test depending on the date of purchase

4. If you do not qualify for the Age Pension

If you do not qualify for the Age Pension but are of pension age, you may still be able to obtain:

  • A Commonwealth Seniors Health Card (CSHC) to help you with the cost of prescription medicines and other health services
  • The Seniors Supplement to assist you to pay regular bills such as energy, rates, phone and motor vehicle registration fees
  • Health Care card, which provides additional benefits/services

5. Claiming the Age Pension

To claim your Age Pension, you need to either complete a form which can be obtained from your nearest Centrelink office or online at: centrelink.gov.au

You should complete and lodge the appropriate claim form as soon as possible after retirement, because in some circumstances there will be a waiting period before you qualify for a benefit.

6. Other benefits if you qualify for Age Pension

If you qualify for Age Pension, you may be entitled to other benefits, which include:

  • Pensioner Concession Card - entitles you to reduced cost medicines
  • Pension Supplement - the value of Telephone Allowance and Utilities Allowance is now included in the new Pension Supplement which will be automatically paid to eligible pensioners
  • Remote Area Allowance - extra financial help if you live in a remote area
  • Rent Assistance - extra financial help if you rent privately

There is also a Work Bonus for pensioners over Age Pension age. Under the Work Bonus, half of the first $500 of fortnightly employment income will be disregarded from the income test for pensioners over Age Pension age. This means that the maximum that can be disregarded is $250. This is in addition to the normal allowable income free area.

The Work Bonus replaced the Pension Bonus Scheme (PBS) on 20 September 2009.

Under the PBS, you could accrue periods of work which count towards a lump sum bonus when you stop working and start claiming the Age Pension.

Note: This information is current at the time of publication (December 2011). However, rules and rates change regularly, and you may also be eligible for other benefits from Centrelink. Go to the Centrelink website or call 13 24 68 for the latest information.

 

I want to speak to an Adviser about the Age Pension

Contact Us to arrange for an Adviser to call you back when it suits you.

 

Last updated on 21st December 2011