News and Articles

Qualifying for an Age Pension is a process most Australians will experience at some stage in their retirement. Timing your application and knowing how back pay works is super handy to avoid missing out on much-needed income. Today Steven Sadler steps us through the rules. The main rule is that the Age Pension is backdated to either the day you lodged your application or the day you became eligible, whichever is the more recent of the two. Here’s how it works.

Christmas is a magical time of the year, but between the joy of giving and taking that much-needed holiday break, it’s easy to overspend. With higher interest rates stuck for the whole year and a higher cost of living, the New Year could bring a financial hangover. But it doesn’t have to be that way. With some planning and the right tools, you can protect your income this holiday season without sacrificing the festive cheer.

The view of the RBA is that the underlying inflation rate of 3.5% (over the year to September) remains too far above the 2.5% target, and the outlook is that it could be some time in 2026 before it’s likely to approach that level. Returning inflation to target range remains the RBA’s major priority.

If you’re one of the majority of retirees who receives a full or part Age Pension or a DVA payment, you’ll be keen to know Centrelink service options over the holiday break.

When an entitlement such as the Age Pension has been in place for more than a century, it’s tempting to assume that the rules are well-known and easy to follow. Not so, unfortunately. Every day the Retirement Essentials Customer Services Team hears from retirees who either didn’t know about rules or didn’t thoroughly understand them, much to their financial detriment.

As you know the team at Retirement Essentials is dedicated to helping to make things as easy as possible for those who are planning for or living in retirement. Today we share a summary of five aspects of Age Pension eligibility that continue to confound applicants and result in lower fortnightly payments. These mistakes run the gamut from timing, reporting, complexity of the means test and partner rules to how to value your assets.

More than one fifth of Australian retirees currently live in poverty, according to a recent report by The Australia Institute.

Given that we are one of the richest nations in the world this is both disturbing and difficult to believe. Today we review these findings and consider if there is cause for concern and, if so, what retirees can do.

A majority of Australians highly value the concept of a guaranteed income for life. It’s easy to forget that the Age Pension provides such a safety net, initially for the 65% of those who reach Age Pension eligibility age of 67. And further down the track to 80% of...

Being told unrealistic targets is hardly likely to motivate anyone at any age. Yet this is often the case with retirement savings targets. Today we take a more realistic approach by using the factual ‘middle’ savings amounts for those about to retire, to demonstrate how quite modest savings can last the distance.

Why is this important?

The most commonly quoted targets for retirement spending and saving are those published quarterly by the Association of Super Funds Australia (ASFA). Much attention is paid to the so-called ‘comfortable’ amounts. The most recent targets (2023) are:

Couple:

Annual spend (early retirement years) $72,663 (reduces to $67,050 after 85)

Savings required (at retirement) $690,000

Singles:

Annual spend (early retirement years) $51,630 (reduces to $48,075 after 85)

Savings required (at retirement) $595,000

But very few retirees achieve these levels of savings by the time they enter retirement. There has also been a steep increase in the number of Australians retiring with debt, many with sizable mortgages. That’s why the median savings levels are much more useful indicators of how people will manage their savings across their full retirement journeys.

Retirement Essentials congratulates the Australian Government on its 20 November announcement that it will take action to reform the retirement phase of superannuation to deliver a better retirement for all Australians. Such reforms are 100% aligned with Retirement...

For many retirees, home is where they want to be – to be part of a community,  to stay connected to friends and family, and to enjoy their independence.  If you’re thinking about what the options are for you to continue living where you are, you’re not alone.   With some planning, and the right resources, you can continue to live comfortably at home, knowing you have support when you need it.

Australia’s aged care system is undergoing significant reforms, reflecting the strong preference of older Australians to remain in their homes as they age.  The upcoming ‘Support at Home’ program is set to replace existing home care schemes by July 2025, and aims to make it easier for people to access tailored support services that fit their needs.

Let’s explore how government programs, financial strategies, and even small home improvements can help you create the retirement lifestyle you really want..

The income test forms a major part of your likelihood of receiving an Age Pension. That’s well-known and the thresholds are quite clear. Which income is included and which is excluded can be more complex, which is why we covered this topic in some detail in recent articles. But many reader comments highlighted yet another level of detail when it comes to retirees and their income. You would probably assume that the method Centrelink uses to calculate your eligibility, based upon income, would be the same regardless of the entitlement. But no, this is not the case. Here’s how Ryley Brito, Technology Product Officer, explains it in a brief Q and A sparked by a member’s need for clarification: