Summary
Qualifying for the Government Age Pension
Alongside your super and any assets or investments you have, the Age Pension could be a way to help fund your lifestyle in retirement.
But there are eligibility rules, here’s what you need to know:
- you need to be of Age Pension age
- you need to be living in Australia and meet residence rules
- You'll need to qualify under the assets and income tests, which will determine payment amount.
Find out more at Services Australia.
The assets test
Your assets will be used to determine your Age Pension payments:
- If you own your home you live in, it may not be counted as an asset.
- If you don’t own your home, you may hold more assets before your payments are impacted.
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The value of these assets may be taken into account1
Real estate you own
Real estate you own
Apart from your principal residence (if it’s under 2 hectares).
Life interests
Life interests
The right to receive an income or use an asset for the rest of your life (unless it’s your principal residence).
Super accounts
Super accounts
Owned by you or your partner if over pension age.
Retirement income account
Retirement income accounts
Like a Choice Income account.
Other assets
Other assets
Including motor vehicles, boats, caravans, fishing or taxi licenses; the surrender value of life insurance policies; hobby collections; cryptocurrencies; household contents and personal items, such as computers and jewellery.
Gifts
Gifts
Assets or money given away to your family or friends that either exceed $10,000 in a single financial year, and/or a total of $30,000 over five financial years.
Granny flat deposit
Granny flat deposit
Money or assets you transfer to live in a granny flat for the rest of your life.
Retirement village deposit
Retirement village deposit
Money you pay to live in a retirement village.
Financial investments
Financial investments
Including cash, shares, term deposits, bonds, managed investments, bullion and debts owed to you.
Business assets
Business assets
If you’re in a business partnership or you’re a sole trader.
The income test
Then there’s the income test. You can earn up to a certain level of income before your Age Pension payments start decreasing. The income test includes all sources of income including employment income and investment income. Deeming rules are used to work out income from your financial assets.
READ MORE: SUPER AND THE GOVERNMENT AGE PENSION
Deeming rates
A simple rate is applied to ‘deem’ the amount of interest earned from financial assets. The calculation is used to determine how much to include as income under the income test. For details visit the Services Australia website
Work Bonus
The Work Bonus is a government incentive to keep older Australians in the workforce and is not counted under the income test. So, if you keep working part-time, you could supplement the Age Pension and use less of your super.
Find out more about the Work Bonus
What to consider when choosing a financial adviser2
If you’re starting to make some big decisions about retirement or want to be sure you’re taking steps in the right direction, tailored financial advice may help. Depending on the type of support you need, you might be able to pay for super advice out of your super balance too. Discover what to consider when choosing a financial adviser.
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Know when to ask for financial help and advice
There are many reasons to seek financial advice. You could consider speaking with someone if you:
- Experience a major life event, namely, planning to retire
- Have financial challenges like debt or unexpected expenses
- Inherit wealth or have a financial windfall
- Want to set specific financial goals or create a budget in the lead-up to retirement
- Need help with investment decisions or retirement planning
- Want to optimise your tax efficiency
It can also be helpful to regularly check in to review and adjust your financial strategy for peace of mind or throughout your retirement trajectory.
Understand a financial adviser’s qualifications, reputation and fees
To make sure you find a knowledgeable financial adviser, you should:
- Ask the financial adviser about their qualifications and experience
- Find out the areas of advice they specialise in and what sort of advice they’re able to offer you. Consider your own personal preferences or needs
- Ask how their service works. For instance, whether they offer once-off or ongoing advice
- Request an outline of their fees and if they'll provide a quote for the advice before completing any work. It's also a good idea to ask how they're paid.
Anyone who gives personal financial advice, and most general advice providers, must have an Australian Financial Services (AFS) license. Individual financial advisers may provide advice as an authorised representative of an AFS licensee. You can check a financial adviser’s qualifications, training, and experience on the Australian Government’s Moneysmart Financial Advisers Register.
Find the right financial adviser for your needs
You want to be comfortable with the person you’re meeting with and feel confident in the future they’re helping you plan for.
Asking friends or colleagues for a referral can be a good starting point. Some of our education sessions are hosted by a financial adviser. This can be a great way to see how someone presents themselves before you make an appointment.
Prepare before your first meeting
First, make sure you have an overall idea of what you want to get out of the meeting and what’s important to you. This will depend on where you are in the retirement planning stage, your financial situation and what you want to achieve.
Next, think about some specific topics or issues you need a hand with. Maybe you want to invest your super in a certain way but aren’t sure where to start. Or you might want to make sure your beneficiary nomination is in order to provide for your loved ones. Perhaps you're considering retirement income options or looking to downsize your family home.
Your pre-appointment checklist
When you go to your first meeting with an adviser, make sure you take important personal financial details with you. This includes your:
Budget
Budget
An estimate of your monthly spend on mortgage or rent, bills, expenses and debt.
Income
Income
Including any wages you earn and money from investments, Centrelink payments or overseas pensions.
Assets
Assets
Including property, super, savings and investments.
Insurance
Insurance
Details of any life, disability or income protection insurance.
From that first meeting, your adviser will generally prepare your personal financial retirement plan, then work through any questions or changes you have.
Once you’re happy with the plan, your adviser will work with you to put the advice into action. Remember, your financial plan isn’t ‘set and forget’. It’s a good idea to regularly review your plan with your adviser and let them know if your circumstances change.
Understanding your options
We have a mix of advice and education options to help you every step of the way.
Online:
Our online webinars are an easy way to learn about managing super or planning for retirement. You can access our webinars from the comfort of your own home. Along with a wide range of calculators to help you take the first step.
Simple4
Call us on 1300 300 273 and ask to speak with a member of the advice team for simple, personal advice.
Comprehensive5
For broader advice, meeting face-to-face with an adviser can help when you want a detailed financial plan and have a number of financial matters to think about. And where available, you have the option to meet with an adviser using a secure video link from the comfort of your own home.
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Disclaimers
- Please consider your own circumstances and refer to Services Australia Asset Types
- There’s no charge for general advice about your super account. The financial advice you receive will be provided by MUFG Retire360 Pty Limited ABN 36 105 811 836, AFSL 258145 and will be their responsibility. Personal advice provided may attract a fee, which will be outlined before any work is completed and is subject to your agreement.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.