How do I apply for an age pension?
Retirement planning can be a Byzantine process, so determining the right time to start drawing on your superannuation or when to apply for the age pension can be difficult
For those of us who have worked hard our entire lives, receiving an age pension can be a bit of a shock. It doesn’t seem fair that after contributing so much to society, we are now considered charity cases. Thankfully, the application process for age pensions in Australia is straightforward, and there are plenty of resources available to help you through it. In this blog post, we’ll discuss the eligibility requirements for an age pension, and walk you through the application process step-by-step. Let’s get started!
Eligibility Requirements for an Age Pension
To apply for an age pension in Australia, you must meet the following eligibility requirements:
Age
You must be 66 years old or older. This age restriction will rise by 6 months every two years until July 1, 2023, at which point it will be 67 years.
Residency
To be eligible for the Centrelink Age Pension, you do not need to be an Australian citizen. However, you must have been a Permanent Resident for at least 10 years AND spent at least five of those 10 uninterrupted years living in Australia (excluding short holidays).
Income Test
If you’re a single person, your assessable income must be less than $58,318; if you’re a couple, it must be less than $89,211.
Asset Test
If you own a property, you can have up to $622,250 for singles and $935,000 for couples. Singles can receive up to $846,750, and couples up to $1,159,500 if they don’t own their property.
The Assets Test will help Services Australia work out if you can get paid Age Pension.
If you get a full pension
Your pension will be reduced if the value of your assets exceeds the permissible limit for your situation.
If you’re part of a couple, the limit applies to the combined assets of you and your spouse, not to each of you individually.
| Your Situation | Homeowner | Non-homeowner |
|---|---|---|
| Single | $280,000 | $504,500 |
| A couple, combined | $419,000 | $643,500 |
| A couple, separated due to illness combined | $419,000 | $643,500 |
| A couple, one part eligible, combined | $419,000 | $643,500 |
If you get a part pension
Part pensions terminate on September 20, 2022, when your assets exceed the limit that applies to your situation.
If you’re part of a couple, the limit applies to the combined assets of you and your spouse, not to each of you individually.
| Your Situation | Homeowner | Non-homeowner |
|---|---|---|
| Single | $622,250 | $846,750 |
| A couple, combined | $935,000 | $1,159,500 |
| A couple, separated due to illness combined | $1,103,500 | $1,328,000 |
| A couple, one part eligible, combined | $935,000 | $1,159,500 |
If you meet all of the above requirements, you can apply online to claim age pension. The best way to claim an age pension is through online. You’ll need a myGov account linked to your Centrelink online account. If you don’t have a myGov account or a Centrelink online account, you’ll need to set them up. Make sure you submit the claim within 13 weeks from when you started it. If you don’t, it’ll expire and you’ll need to start again. After you submit your claim online, you’ll get a receipt and Services Australia will send a letter with the result either to your myGov Inbox or Express Plus Centrelink mobile app.
What documents do I need to apply for age pension?
You must give Services Australia the following details before or when you submit your claim. If you’ve already provided these, you may not need to do so again. To apply for an age pension, you’ll need to provide some documents that show:
- your age
- your bank account details
- Your tax file number (TFN)
- Your Australian residence status, unless you’re an Australian citizen who was born in Australia
- Your income and assets
- A centrelink reference number – you can apply for one if you don’t already have one
You might be required to provide Services Australia with identification documents prior to submitting your claim so that they can verify your identity. Having them prepared will enable you to complete your claim without adding to the wait time.
Services Australia will tell you in the claim which documents to give them, as this depends on your circumstances.
Application Process for Age Pension
If you’re over the age of 66 and looking to retire, you may be eligible for an age pension from the Australian government. Here’s a quick overview of the application process:
- Firstly, you’ll need to meet the age and residency requirements. You must be an Australian citizen or permanent resident, and you must have lived in Australia for at least 15 years.
2. You’ll also need to meet certain income and assets tests. The income test looks at how much money you earn from work, investments, pensions, and other sources. They deem an income from assets as well. The assets test looks at how much money and property you own. Centrelink will pay the lowest amount of the two tests.
3. Once you’ve determined that you meet the eligibility criteria, you can start the application process by setting up your online account.
4. You’ll need to provide some basic personal information, as well as details about your income and assets. Centrelink will use this information to assess your eligibility for the pension.
5. If you’re eligible, you’ll start receiving payments within a few weeks (or months – apply up to 12 weeks early!). The amount you receive will depend on your individual circumstances.
6. If you’re not eligible for the full pension, you may still be able to receive a partial payment. This is known as the Partial Pension.
7. You can reapply for the age pension at any time, if your circumstances change. For example, if you move house or your income changes and you have lost the pension due to assets or income tests.
The application process for an age pension is relatively straightforward. However, it’s important to make sure that you meet all of the eligibility criteria before you apply. If you have any questions, you can contact Centrelink on 136 240 or visit your local office.
Maximum Rates of Pension Payments
Age Pension benefits vary in amount depending on whether a person is single or in a relationship. If you live with a partner, Services Australia needs to know about both of your income and assets.
The Department of Social Services examines these rates on a regular basis in order to adjust for changes in the Consumer Price Index. The amounts shown here represent the highest rates for each fortnight. You may have the option of receiving your money every week in specific situations. Depending on your situation, you can possibly receive a payment in advance.
Normal Rates
| Per fortnight | Single | Couple each | Couple combined | Couple apart due to ill health |
|---|---|---|---|---|
| Maximum basic rate | $936.80 | $706.20 | $1412.40 | $936.80 |
| Maximum pension supplement | $75.60 | $57.00 | $114.00 | $75.60 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total | $1026.50 | $773.80 | $1547.60 | $1026.50 |
Transitional Rates
Some people who were getting part pensions on 19 September 2009 are on transitional rates. This is until they catch up with the current normal rates.
| Per fortnight | Single | Couple each | Couple combined | Couple apart due to ill health |
|---|---|---|---|---|
| Maximum Rate | $842.30 | $680.30 | $1360.60 | $842.30 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total | $856.40 | $690.90 | $1381.80 | $856.40 |
If you have any questions, please do not hesitate to contact Centrelink or us for assistance. We hope this article was helpful and provided all the information you need to apply for an age pension.
