If you’re in your early- to mid-60s, you’re not far away from potentially being eligible for the Age Pension. Read on to find out all about the four Age Pension eligibility requirements in Australia. You must satisfy them all to receive either a full or part Age Pension.
1. Age eligibility
This is the most basic of the four Age Pension eligibility requirements. Currently, the minimum age to qualify for the Age Pension in Australia is 66 years and 6 months, and this will rise to 67 on 1 July 2023.
2. Residency
The second of the four Age Pension eligibility requirements is Australian residency. You must be a current Australian resident and have been one for at least 10 years during your life, including at least a continuous period of 5 years.
3. Assets test
Please note: We’re not financial advisers, but we can provide you with some general information to help you understand the Age Pension Assets test. Passing this test is the third Age Pension eligibility requirement. You should get independent advice based on your specific financial situation.
Passing the Age Pension Assets test means that the value of your assets doesn’t exceed the maximum thresholds that are set and regularly reviewed by the Federal Government. If they do, you will either be ineligible for any Age Pension or only eligible for a part Age Pension.
It’s important to understand that your super account balance is included in the value of your assets for the purposes of the Age Pension Assets test, but your residential family home is not. You can find out more about super and Age Pension eligibility here.
4. Income test
Once again, we’re not financial advisers, but we can provide you with some general information to help you understand the Age Pension Income test. Passing this test is the fourth and final Age Pension eligibility requirement. You should get independent advice based on your specific financial situation.
Passing the Age Pension Income test means that the amount of regular income you receive doesn’t exceed the maximum thresholds that are set and regularly reviewed by the federal government. If they do, you will either be ineligible for any Age Pension or only eligible for a part Age Pension.
It’s important to understand that any super income stream you may be receiving is included in your regular income for the purposes of the Age Pension Assets test. You can find out more about superannuation and your Age Pension eligibility here.
Age Pension FAQS
What if my assets or income levels change?
If you’re eligible for a full or part Age Pension and either your assets or income level changes, then you must contact Centrelink within 14 days to be reassessed. Your Age Pension may be reduced or cease all together if you exceed test thresholds.
Can I still get the Age Pension if I have my own super?
Yes, provided you still pass both the Assets and Income tests even with your super taken into account.
How much is the Age Pension?
This depends on your individual financial situation and living arrangements. You can find out current Age Pension rates here. They are reviewed by the federal government in March and September each year to balance the effects of inflation.
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