Topping up your pension with Centrelink Age Pension
With the Global Financial Crisis decimating superfunds, many members are finding they are not going to have enough super for retirement. Fortunately they have Centrelink's Age Pension to fall back on. So how do you apply for Age Pension? The answer is to visit your nearest Centrelink Office and bring along your proof of ID documents eg passports, utility bills, bank statements and list of assets in the house and list of investments. Centrelink officer will help calculate your age pension entitlement and tell you about other payments that you may qualify.
But on the topic of Age Pension, I have compiled information from Centrelink to help you understand the requirements. Firstly you must be of qualifying age (see the table below) and secondly you must meet the residency requirements. The residency requirements are that you are a citizen or permanent resident living in Australia for a continuous period of at least 10 years. Or if for a number of periods which total more than 10 years, with one of the periods being at least 5 years. If you are a New Zealander, you must be in Australia on 26 Feb 2001, or for 12 months in the two years immediately before that date, or was assessed as "protected" before 26 February 2004.
| Date of birth | Women eligible for Age Pension at age | Men eligible for Age Pension at age |
| before 1 July 1935 | 60 | 65 |
| from 1 Jul 1935 to 31 Dec 1936 | 60.5 | 65 |
| from 1 Jan 1937 to 30 Jun 1938 | 61 | 65 |
| from 1 Jul 1938 to 31 Dec 1939 | 61.5 | 65 |
| from 1 Jan 1940 to 30 Jun 1941 | 62 | 65 |
| from 1 Jul 1941 to 31 Dec 1942 | 62.5 | 65 |
| from 1 Jan 1943 to 30 Jun 1944 | 63 | 65 |
| from 1 Jul 1944 to 31 Dec 1945 | 63.5 | 65 |
| from 1 Jul 1946 to 30 Jun 1947 | 64 | 65 |
| from 1 Jul 1947 to 31 Dec 1948 | 64.5 | 65 |
| from 1 Jan 1949 to 30 Jun 1952 | 65 | 65 |
| from 1 Jul 1952 to 31 Dec 1953 | 65.5 | 65.5 |
| from 1 Jan 1954 to 30 Jun 1955 | 66 | 66 |
| from 1 Jul 1955 to 31 Dec 1956 | 66.5 | 66.5 |
| from 1 Jan 1957 | 67 | 67 |
If you are of qualifying age, an individual or couple have to pass either Centrelink's ASSET TEST or INCOME TEST.
ASSET TEST
Asset test limit for Full Age Pension. One receives full pension if one's assets are below the limit :
| Family situation (Min limit) | For homeowners | For non-homeowners |
| Single | $186,750 | $321,750 |
| Couple (combined) | $265,000 | $400,000 |
| Illness separated (couple combined) | $265,000 | $400,000 |
| One partner eligible (combined assets) | $265,000 | $400,000 |
If your assets are greater than the minimum limit, your age pension is reduced by $1.50/fortnight for each $1,000. The age pension reduces to nil once your assets reaches Centrelink's maximum limit (see below).
| Family situation (Max limit) | For homeowners | For non-homeowners |
| Single | $690,500 | $825,500 |
| Couple (combined) | $1,024,000 | $1,159,500 |
| Illness separated (couple combined) | $1,272,500 | $1,407,500 |
| One partner eligible (combined assets) | $1,024,500 | $1,159,500 |
The maximum amount of age pension you can get each fortnight is :
| Status | Maximum pension rate per fortnight (effective from 20 March 2012) |
| Single | $695.30* |
| Couple | $524.10* each |
As mentioned previously, the amount is reduced if your assets exceed the minimum limit but is under the maximum limit. $1.50/fortnight for each $1,000.
* These amounts don't include the PENSION SUPPLEMENT of a maximum of $60.20 a fortnight for singles and $90.80 a fortnight for couples (combined).
INCOME TEST
The income test for pension depends on how much you earn every fortnight. These earnings include deemed income from your assets and financial investments.
| Family situation | For full pension/fortnight | For part pension/fortnight |
| Single | up to $150 | less than $1,661 |
| Couple | up to $264 | less than $2,542 |
| Illness separated (couple combined) | up to $264 | less than $3,286 |
For a single person, the first $44,600 of your financial investments is deemed to earn income at a rate of 3% per annum, and anything over that is deemed to earn income at a rate of 4.5% per annum.
For couples, the first $74,400 (combined) of you and your partner's financial investment is deemed to earn income at a rate of 3% per annum. Any amount over that is deemed to earn income at a rate or 4.5% per annum. If neither of you is receiving an Age Pension, then the first $37,200 (each person) of your financial investments are deemed to earn income at a rate of 3% per annum and any amount over that is deemed to earn income at a rate of 4.5% per annum.
CONCLUSION
Clear as mud? Try reading this again and it might make some sense. Feel free to contact me if you have questions. info@superfund.me
