A few years ago there was a terrific public safety advertising campaign developed by Metro Trains in Victoria called Dumb ways to die. It was designed to promote railway safety and became the world’s most shared public awareness campaign. It also spawned a video game of the same name. I was reminded of that campaign when writing this article and at the risk of offending some of our readers I was tempted to call this article Dumb reasons to delay.
My alternative title is apt in many ways as so many people delay applying for the Age Pension for reasons that are just plain wrong and ultimately very costly. It could be because they are misinformed, they believe an urban myth or just don’t understand the rules. Today I’m listing the five worst (dumbest) reasons and sincerely hope you have never made, or will make, any of these mistakes. But believe me when I say, many people do.
Five worst (dumbest) reasons why people delay
| The (dumb) reason to delay | The reality |
| I can’t apply until I stop working | You do not need to be retired to apply for the Age Pension. You do need to meet all the eligibility tests including the age, residency, assets and income tests. From an income perspective as long as your total income is below $63,559 per year for a single person and $97,177 combined for a couple (as at August 2024) you could still be eligible for at least a part Age Pension. Many people choose to supplement their Age Pension with part time work. |
| I can’t apply until my spouse or partner stops working | Similar to the answer above you can apply for the Age Pension even if your spouse or partner is still working. What matters is whether your combined income and assets fall under the disqualifying assets and income thresholds, not whether your spouse is still working. |
| My partner is not yet of Age Pension age so there is no point in applying yet | This could be a costly mistake. If you are of Age Pension age then you are eligible to apply regardless of the age of your partner. You will be assessed as a couple on the basis of your income and assets and if you meet all the tests you will receive your (half) share of the couple’s payment. When your partner reaches Age Pension age they can apply and together you will receive your full payment as a couple. There are some further advantages such as if your partner’s super is still in accumulation mode it won’t be assessed until they reach age 67. |
| I’m renovating my home. Once I’ve spent that money I will get a bigger Pension payment so I’ll delay my application. | Another costly mistake. Yes you could be eligible for a bigger payment once you have spent the money on the renovation but you could still be eligible for some payments beforehand. You would be far better off getting what you can now and then updating Centrelink after you have spent money on the renovation at which time your payments could increase. |
| I checked a few years ago and wasn’t eligible so there is no point applying. | We have seen one of our readers make this very costly mistake and miss out on three year’s worth of Age Pension payments. You can read about Geoff here. This is a mistake because two things are likely to have changed since you last checked a few years ago. Firstly the thresholds will have increased. Secondly you are likely to have spent some of your retirement savings if you have retired. You need to live off something! The combination of these two factors means people that were above the disqualifying thresholds become eligible much faster than they think. You should keep checking regularly and can do so here. |
We see people make these and other mistakes often. I think there are three golden rules.
- Don’t assume. Keep checking your eligibility.
- If you are eligible, apply ASAP. Delays cost you money.
- Get help if you don’t understand how the rules work or want to improve your situation.
So how about you? Have you ever made any of those mistakes or know someone who has?
I was receiving part pension about three years ago then centrelink stopped it as because my salary exceeds the the required amount annually do I need to reapply to work out if I am still eligible
Hi Yvette, you do not need to reapply just to check your eligibility, you can do so quickly and easily via our free, online calculator HERE. If you are eligible, you will need to lodge another claim to begin receiving payments, you cannot just ‘update’ Centrelink.
Hi there,
I am currently working full time in the Dept Of Justice as a VSO 2 escorting subcontrators in and out of the Prison with their tools. I don’t plan to stay after possibly January 25 when my contract expires, when can I complete the paperwork to retire fully please?
Can you advise what is best?
Hi Janice, our advisers can have a consultation with you to help plan your retirement so you can better decide when to retire, CLICK HERE to make a booking.
I am working 45 hours a FN as permanent part timer, I turn 66 in October. I am receiving $363.00 a FN from Centre link, I am a widow and I’m still classed as Job Seeker, when should apply for Pension
Thanks
Hi Lynne, you cannot apply for the Age Pension until 13 weeks prior to you turning 67 however if you are still on Job Seeker payments at that time Centrelink will contact you to transfer over and it is often quicker/easier to do it via the transfer they offer rather then manually applying yourself.
i am of retirement age and still work part time which I want to continue to do but my husband was made redundant on 30 June thus year and turns 67 in late October. where abd how do start the Retirement process
Hi Judith, you can probably begin your Age Pension application now as Centrelink allows claims to be lodged up to 13 weeks prior to turning Age Pension age so you can likely lodge now for both yourself and your husband.
I intend to give up work on November 2024 when I turn 75 years old. my annual rate is almost $60000 / year
my wife is already not working, and she is 67
our assets are well under what is listed and both of us have already registered with the Centre Link.
should I apply now or wait until I no longer earn any money?
Hi Joseph, based on what you have said you should be eligible for the Age Pension now so we would recommend applying now. You wouldn’t get the full pension due to your income but if you wait until you retire you won’t get anything paid back.
Hi, I’ve retired to France and thanks to the government refusing to sign an agreement with France I cannot receive an age pension from Australia, even after having worked there continuously for 47 years.
Now I am regarded as a ‘non-citizen for tax purposes’ and to be eligible to apply I would need to return to & live in Oz as a ‘resident for tax purposes’ for 2 years!.
Can you see the government agreeing to a pension agreement with France in the near future, as they already have existing agreements with most other European countries including Spain, Italy, Germany, Holland, etc, etc.
Hi Patricia, as the old saying goes ‘never say never’, however currently it is not on the radar.
when applying for the pension and disclosing assets what about if you have money in trading or cryptocurrency? is this added to the assets like superannuation?
Hi Maureen, yes you need to declare any/all financial assets including shares and crypto.
i just received a workers comp payment of $99000 .i turn 67 in 12weeks.i am still working full time untill i turn 67.our assets not inc house are about $380000 .my wife turns 67 a week before me she is not working .can we both get the full pension.
Hi Leonardo, before trying to calculate your Age Pension amount I would recommend checking if your compensation payout precludes you from being able to apply for the Age Pension as some payouts do mean you cannot receive social security payments for a set period of time. You can use Centrelink’s calculator HERE.
I will be 67 in March 2025. I would like to stop working from 15/11/2024. My wife is 63years old and doesn’t work. We own our home (no mortgage). We also own an investment property which was purchased for $385K 3 years ago and currently returning us a weekly rent of $600 – There is no mortgage. I have an account based pension with a balance of $145K and bank balance/shares of $25K; my wife has no super as we withdrew our super to payout mortgages. How is the investment property assessed?
Hi Rao, the investment property will be assessed as an asset based on it’s current market value.