The aged pension is a financial support system for seniors in Australia, allowing them to maintain their standard of living after retirement. In order to receive the aged pension, applicants must meet certain criteria, including income and assets tests. Understanding the requirements of the aged pension and the maximum amount of income you can earn and still receive the pension can help you plan for your retirement.
Understanding Aged Pension Eligibility
In order to receive the aged pension, applicants must meet a number of criteria. Firstly, applicants must be an Australian resident and over the age of 65. It is also necessary to pass the income and assets tests. The income test assesses your income from all sources, including government payments, wages, investments, and rental income. The assets test assesses the value of your assets, including your home, investments, and other property. The test that gives you the lower payment is the one that will be used to determine your eligibility for the pension.
How Much Can You Earn and Still Receive the Aged Pension?
The amount of income you can earn and still receive the aged pension depends on your individual circumstances. Generally, a single person who owns their own home can earn up to $174 per fortnight before their pension is affected. However, if you are a homeowner who is part of a couple, the amount you can earn before your pension is affected increases to around $286 per fortnight. If you are a non-homeowner, then the amount you can earn before your pension is affected is $437 per fortnight for a single person and $749 per fortnight for a couple.
It is important to note that these figures are only a guide. The actual amount you can earn and still receive the aged pension will depend on your individual circumstances.
In conclusion, the aged pension is a financial support system for seniors in Australia. To be eligible, applicants must meet certain criteria, including income and assets tests. The amount of income you can earn and still receive the aged pension depends on your individual circumstances, but generally, a single person who owns their own home can earn up to $174 per fortnight before their pension is affected. It is important to note that these figures are only a guide and the actual amount you can earn and still receive the aged pension will depend on your individual circumstances.
Aged pension is heavily dependent upon your level of income, and can provide a valuable financial lifeline to those who are retired and no longer working. The government will assess both your income and assets to determine your eligibility, but how much can you earn and still get the pension?
For single applicants who are over the age of pension eligibility and currently not in receipt of a social security payment, their income earning capacity and assets must be within the accepted limits in order to receive an age pension. The assets portion of the test covers assets such as property (both residential and lifestyle) as well as financial investments, caravan, car and personal items. The assets limit, as of July 2019, is $254,000 for singles and $380,000 for couples.
In regards to income, the maximum amount of income that can be earned and still get the pension will vary depending on the type of pension and whether the applicant receives an energy supplement. Generally speaking, most pensioners who receive their aged pension can earn up to $170 per fortnight from employment before their pension is affected.
Part-pensions are available to people who meet certain limits on their assets and income. If a single person’s assets are between $254,000 and $542,250, or a couples combined assets are between $380,000 and $816,000, they may be eligible to receive a part-pension. These limits can depend on certain circumstances such as rental income, rental properties and investments.
For those on a full or part-pension, the government will assess their income after deductions each fortnight. Any assessable income above $170 per fortnight for singles and $299 per fortnight for couples will reduce their pension payments. This could mean that any additional private income could reduce their pension payments to zero.
In conclusion, the amount of income that can be earned and still get the age pension depends on the type of pension received and the individual’s circumstances. It is important to seek advice from Centrelink regarding your eligibility for the age pension, or any other social security payments, to ensure you are receiving the correct level of assistance.