The Age Pension is a key income source for many Australian retirees. About 39% get the full pension, and 24% get a part pension. It’s a complex system, but it’s designed to support you in retirement. You can qualify for it from age 67. It benefits 70% of retirees significantly and provides some income to 80% of people over 65. So, even if you’re not eligible now, you’re likely to get some pension during your retirement.
Age Pension Rates:
From March 20, 2024, Australia’s Age Pension has increased. Here are the new rates:
- Single: $1,116.30 per fortnight ($29,023 per year)
- Couple (each): $841.40 per fortnight ($21,876 per year)
- Couple (combined): $1,682.80 per fortnight ($43,752 per year)
The government updates these rates twice or three times a year. So, it’s important to stay updated and check your eligibility to ensure you’re getting all your benefits. The maximum full Age Pension has increased by $19.60 per fortnight for singles and $14.70 per person for couples.
How is the Age Pension Calculated?
Centrelink uses two tests to calculate your Age Pension: the income test and the assets test.
For the assets test:
- Singles: To get full Age Pension, your assets must be below $314,000 (if you own a home) or $566,000 (if you don’t). For part Age Pension, it’s less than $686,250 (homeowners) or $938,250 (non-homeowners).
- Couples: For full Age Pension, combined assets must be below $470,000 (homeowners) or $722,000 (non-homeowners). For part Age Pension, it’s less than $1,031,000 (homeowners) or $1,283,000 (non-homeowners).
For the income test:
- Singles: To get full Age Pension, your income must be below $212 per fortnight. You can still get part Age Pension if you earn less than $2,444.60 per fortnight.
- Couples: For full Age Pension, combined income must be below $372 per fortnight. For part Age Pension, it’s less than $3,737.60 per fortnight.
These thresholds apply from July 1, 2024, to September 19, 2024. Also, you can earn up to $300 per fortnight from work without it affecting your Age Pension. This is called the work bonus.
How often is the Age Pension paid?
The Age Pension is usually given every two weeks. But, if you’re homeless or finding it hard to handle your money, you can ask Services Australia (through Centrelink) to get paid every week.
Can you get an advance payment of the Age Pension?
If you’ve been getting the Age Pension for at least three months, you can ask for one to three payments in advance. If you get a full pension, you can get certain amounts in any six-month period. If you get a part Age Pension, the amounts you can get are adjusted accordingly. Any advance payments you get will be taken from your future Age Pension, so you can pay back over time.
When will Age Pension rates change in 2024?
The Age Pension amount is updated twice a year, in March and September. The new rates are usually announced around the 20th of these months. The updates are based on changes in the Consumer Price Index, the Pensioner Beneficiary Living Cost Index, and the average weekly earnings of men. This process of updating is called indexation.
When will Age Pension thresholds change in 2024?
The limits for the income and assets test change twice a year, in March and September. Plus, there’s another adjustment in July. These changes are based on an index.