Getting ready to retire soon? Organizing your savings? Trying to Maximising your Age Pension benefit? Or maybe you are not sure if the payment you are currently receiving is correct? Or maybe you want more? Or maybe dealing with the Centrelink office is just too difficult?
In this video I will cover all main issues about Age Pension eligibility and I will cover the following:
0:00 Age Pension intro
1:51 Age Pension age Test
4:52 Residency test
6:49 Maximum Age Pension Rates
8:26 Means testing for Age Pension
8:44 Why is it important to understand Means Testing?
9:13 Income Test
10:57 Why Income Test is so generous?
12:24 Asset Test
14:25 What is the most important about those rules for you?
Videos mentioned:
Extra Stimulus Payments for Pensioners and Age Pension News –
Retirement Income Explained –
Retirement Planning and Superannuation strategies –
To download the book 12 PRINCIPLES OF INVESTING:
Contact details:
Katherine Isbrandt of About Retirement
Website:
Email: katherine@aboutretirement.com.au
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Age Pension – Are you eligible? If not, why not?
The Age Pension is a financial assistance program provided by the Australian government to help older individuals who are retired or have reached their qualifying age, meet their living expenses. The Age Pension is designed to provide a certain level of income support to those who meet specific criteria set by the government.
To be eligible for the Age Pension, individuals must meet certain age and residency requirements. For example, you must be at least 66 years old to be eligible for the Age Pension, and you must also be an Australian resident and meet the required residency period. The residency period for the Age Pension is usually 10 years, with at least five years of continuous residency.
In addition to the age and residency requirements, there are also income and asset tests that individuals must pass in order to be eligible for the Age Pension. These tests are designed to assess the financial circumstances of the individual and determine their need for the pension. The income test assesses the amount of income that the individual receives from various sources, while the asset test assesses the value of the individual’s assets, such as savings, investments, and property.
If an individual does not meet the eligibility requirements for the Age Pension, there are several potential reasons why this might be the case. One common reason is that the individual’s income and assets exceed the threshold set by the government, making them ineligible for the pension. Additionally, if the individual does not meet the residency requirements or has not reached the qualifying age, they would not be eligible for the Age Pension.
It is important for individuals who are not eligible for the Age Pension to explore other avenues of financial support. This may include looking into other government assistance programs, such as the Disability Support Pension or the Carer Payment, if they meet the eligibility criteria for these programs. Additionally, individuals can also explore private options for financial support, such as superannuation or other retirement savings.
In conclusion, the Age Pension is a valuable form of financial support for older individuals in Australia, but not everyone will be eligible for this assistance. It is important for individuals who are not eligible for the Age Pension to understand the reasons for their ineligibility and explore other options for financial support. By taking the time to understand their options, individuals can work towards securing their financial stability in retirement.
Hi Kath. Just wondering what category am up to since my wife is still working full time aged 60 and am 67 next month working part time @ 40 hrs/ forthnight. Am I applying for single one? Thanks
The moral of the story seems to be: have your own home.
Which is much easier said than done these days.
It really is a system that favours home ownership massively.
What is the definition of asset
I need a spanking Katherine. I can pay you from my pension.
how does your superannuation apply to your assest test? I am 60yrs young atm, however my current super is close to 400K
If you aren't eligible ,then you have too much money!
Your videos are very informative. If possible please also give Medicare and health system insights to your audience because in sunset years health and pension are two very important issues for rest of the life. For expat community of Australians it is even a more serious issue because those who have remained overseas for a long while, outsourced agencies (such as Centrelink) and even government officials appeared to be ill informed. There are lot of things need to be done for expat Australians living in a treaty countries and Commonwealth realms, who want to return home in their retirement years.
Asset test numbers are two years out of date
I found your video to be quite refreshing and very knowledgeable, however I am slightly confused when it comes to the single pensioner home owner asset threshold and the single pension non home owner asset threshold. I know that the principal place of residence is exempt, and any assets over XYZ get applied a Deeming rate (currently 2.5%), however is the current $543,750 non home owner asset threshold exempt or is a Deeming rate applied to it on the 1st $. It's just confusing because it appears that a home owner gets exempt on their principal place of residence and the non home owner isn't exempt and a Deeming rate is applied from the 1st $. Can you clarify this please. I am a non home owner and am thinking that the Deeming rate is a separate matter, and that the asset thresholds is what qualifies you, e.g. home owners can have about $308,000 of assets and non home owners $543,750 (current), but it sounds bizarre if the $543,750 isn't exempt because a home is worth far more than that. I hope I haven't confused you.
The best thing that can happen to us after retirement is a good investment plan. This is not difficult to achieve with a frugal lifestyle and cautious budgeting. I'm glad we learned early and we worked hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and I never earned more than a middle-class salary. We plan to retire at 60 with a stock portfolio worth $1.7M. We kept investing without having to worry about our retirement benefits because we were able to secure our future finances. We have a guaranteed lifetime income on top of our SS that generates a steady stream of retirement income. Thanks to our financial advisor Jacqueline Kobinski.
Hi Katherine, Do you have any advice for pensioner who wants to go and live overseas.
You work all your life to retire only to find out that the government is there at the end of your life to scam as much as they can and throw you out of your own house that you have paid for all your life. It's for the country of cause Fa-K the People.
And we call ourselves a free country, the fact is the only thing the country & governments, caters for is the rich, less rules are put on their great fortunes, because they worked for it.!!! talk about that famous word going around today hypocrisy ???????????????????????
PS Aussie woman sparks outrage over age pension question: 'Entitled'
Hi, I'm a little confused about retirement I still have 5 yrs and my husband 2 years before we are entitled , but work injury and cancer has retired my husband and I early , what money can I have in the bank , is there a limit or do I have to spend it first before I can get my retirement pension .
Hi Katherine, I've just stubble upon your channel. Loving how clearly you explain things. I'm just over 2 years off pension age and am living with an ex partner(we've been ex for 20 years). I own my property and I also have an investment property. He has nothing. Can you please send me links to the ex partner type videos as well as investment property videos. I'm looking at selling the investment property maybe? Investment property is around 250K in value. Thanks and I've subscribed 🙂
I turn 67 on 11/2/34. When can I apply for my pension?
Hi, it's great to watch your pension video. May I ask if I withdraw all my super and put in in my mortgage of my own house, does it still considered as my asset?
Thanks
This video is a good primer. It begs the question for many retirees “what are some strategies for organising assets so to optimise pension and maximise retirement income?”. This gets to the heart of the debate about the taper trap and do you really need almost a million dollars to retire comfortably.
Excellent video full of important information, can you recommend any good retirement planners in Sydney? I'm being forced into early retirement, I'm 57 because of medical grounds knees, with 500k in dividend shares and 200k in super non home owner, single, Australian citizen..
I’ve got my full Pension what I need now is the analysis of my UniSuper it’s tax free, not sure to take it out and run, as I don’t want to do a yearly taxable income while on a age pension
I’ve got my full Pension what I need now is the analysis of my UniSuper it’s tax free, not sure to take it out and run, as I don’t want to do a yearly taxable income while on a age pension
I’m keen to maximise my full pension but it’s dealing with Centrelink I don’t know all the rules, I’ve got till March 20, to complete it on line, trying to figure if I’m over the $280,000 limit, I’m trying to get a few things done, as per your video, legally using my savings for my house and Renovating it as possible, of course I left till late in life, I’m useless when dealing with this stuff, anyway,
is the financial asset like ETFs asset tested as well as income tested both?
Hi Katherine, I wish I had come to your video much earlier. My question is when to apply pension. If I finish working in December, my income for that financial year would be too high. Should I wait this next financial year to apply? Thanks for your advice in advance.
i want a part pension so i need some support in this area where are you ? we need to talk
Hi Katherine, thanks for your videos. They are easy to understand. I have two questions though with regard to qualifying the Resident Test.
1. Does all Australian citizens automatically qualify the residency test? and the 5 year continuous residency rule does not apply to naturalised citizens. 2. Also continuous residency means , can a resident go overseas for short holidays upto 6 weeks every year during these 5 years of continuous residency to qualify the resident test? Thanks very much in advance for your help. Regards Vinai
hello…. is your motor car included in assets ??? i have just applied for a SINGLE pension 66.5 yo….. i live with my " wife "… we share the home and utility costs… electricity etc… i live with her because i cannot afford to live anywhere else… i have very little money… my wife ruined me with gambling… spent all our savings and stole money as well as borrowing $70,000 to gamble with….. so my assets are small… new car.. half house and approx $30 to 35 thousand dollars in bank and cash…. if i must leave the home to get the pension i will have to divorce her and claim her super and savings…. not a good thing to do… how can i find out what assets are…. i cannot find a link to any of your vids….. yours peter
Hi. Thanks for the video. Does a property owned by a SMSF count towards the asset test? Married couple. Home owners. 63 & 62 yrs. If yes would put us over the limit. If no, then may be eligible for pension when older. Thanks.
What type of assets are you talking about? Physical assets or financial assets?
Hi Catherine,thank you for your videos.Would love to have a more in depth conversation with you,since I am just about to become a retiree myself and a bit confused about all the intricacies.Is there a phone number or email that I can reach you?Many thanks.Cheers Robert
Just recently subscribed. Very good information. It is now July 2022, did the asset limit test increase since last year? Thank you
HI katherine, thank you again for your clear information. One question about the last segment on asset testing for a single home owner- asset limit full pension being $268000-(now 280,000I think jul 2022) , and the cut off assett amount from any pension being $585750- does that amount still exclude the family home valuation- ? e.g If you owned an investment property + home = over 600,000, but the investment property+ other assets were valued under the $268-280,000 ? Would you still be eligible for the full pension?Thanks, Sasha
How does the pension work if I receive an inheritance?
Retirement age pension used to be age 60.
There are so many convolutions and traps! We have too many assets but we are preparing to sell in order to simplify our situation. The rules have changed considerably since we retired. I have found your information informative. We are in SA. Do you have any mature advisers in Adelaide who you may recommend?
Hi Trish , home owners l( their main residence ) , I understood from your videos are exempt from being included in the asset test ! Please correct me if I am wrong ? Soin this video are you referring to assets apart from the residency home ?
Thanks for the video. When you said asset test, do you mean the property pensioners are living in or the investment property they have? My understanding is the property that pensioners are living in will not be taken into account, no matter what value the property worth.
Thanks so much for your information
Hi
Your information is very valuable..
But I'm a bit confused.. according to the government website it states that couple who own their home and can have up to $405000.00 in the bank and they will be eligible for the full pension. Is that correct?.
Asset test for a couple is that include your suppa
ARE YOU RUSSIAN????
YOU ARE A CROOK. TELLING PEOPLE HOW TO RIP OFF CENTRELINK. THIS CLIP HAS BEEN DOWNLOADED AND SENT TO MYGOV CENTRELINK. PEOPLE LIKE YOU SHITE ME UP THE WALL.
Great video I am 65 do I have to wait right to the age of 67?Or can I apply for the aged pension at 66 and a half?
Can I get an age pension and DVA pension at the same time?
I am 87 and not eligible for a pension because I saved. Australia is run by a bunch of very doubtful politicians whose only interest is themselves. The politicians make sure they all get well paid pensions.
If I own some investment properties in a family trust does that reduce my asset test requirements?
Excellent video.
Thank you and keep up the good work.
It's nice to see Australian contents on you tube
Hi. Firstly, thank you for your clear and simple explanation. Much appreciated. My situation is this. I am 70, I own my house and I'm on a small CSS pension of about $20Kpa and privately funded pension of about $9000pa, which will run out in a year or so. I live with my partner, we bought the house as tenants in common and we do not share any bank accounts. I have no idea how much money my partner has and she refuses to discuss this matter. Do I have any chance of getting an age pension?
The government should lower the age for aged care pension because people are suffering with illnesses they can’t get rid of and are stuck with they can not work anymore due to these permanent illnesses and diseases. But government is making them all suffer especially with chronic pain. It’s so wrong everyone is not healthy and fit any more government needs to change what they are doing to people that are permanently sick because there body lets them down they are suffering badly till they die. This Australian government is a disgrace to its Australian country and the Australian people. People should be able to have access to proper pain relief and comfortable when they have permanent illnesses and diseases till they die not suffering till they die. Is this what Australian peoples worth is? Haven’t we suffered enough?
US social security much better. But means testing coming in the near future
Australian age pension limits so many people that have paid into it. How is that fair ?