From mid next year, the pension age will rise to 67 years. If you are eligible for the age pension, there are a number of ways to maximise your entitlement. It’s important to receive what you are entitled to by understanding how assets are calculated and how you can reduce them to receive a higher pension.
To receive a full pension, assets (excluding the value of your primary residence) must be less than $280,000 for a single homeowner or $540,500 for a homeowner. The amounts for couples are $419,000 and $693,000. The amounts are greater for part pensions.
Finance writer Noel Whittaker explains that it’s possible to reduce your assets to qualify for a full or part pension by understanding the assets test and taking action. You can reduce your assets in a number of ways and therefore qualify for a higher pension. When you first apply for a pension you are asked to value your household contents and personal effects. Your assets are calculated on market value, that is what you would get at a garage sale rather than replacement value, usually a much higher amount. So it’s important that the value of your assets is realistic – for many people, the market value may be $5000 or less.
You can also gift money to reduce your assets up to $10,000 a year or $30,000 over a five-year period. You can renovate your home, contribute to a younger spouse’s super, pre-pay funeral expenses or repay debt.
There is also an income test for the age pension which includes earnings from work, investments or superannuation.
More Information:
- Services Australia: Financial Information Service or call 132300
- Superguide: How to maximise your age pension
- Canstar: 10 ways to maximise your pension
- National Seniors: How to maximise your entitlements
- Noel Whittaker: Age pension calculator
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Older Women’s Network NSW
The Older Women’s Network in NSW believes in a society rich in social capital, where mutual respect and trust are paramount, where diversity and debate are valued and where people and their networks have a legitimate voice.
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Older Women’s Network NSW
8-10 Victoria Street,
Newtown NSW 2042, Australia.
+61 – 2 – 9519 8044
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We acknowledge the traditional custodians of the land on which we work and live, and we pay our respects to Elders past and present.
We acknowledge the sorrow of the Stolen Generations and the impacts of colonisation on Aboriginal and Torres Strait Islander peoples.
OWN NSW supports the Uluru Statement from the Heart, the call for a First Nation's Voice enshrined in the Australian Constitution and a Makarrata Commission to oversee agreement-making and truth-telling.