Age Pension income and assets thresholds
Last week we shared the news about the largest Age Pension increase for 12 years. We also mentioned the increase to the Age Pension income and assets thresholds, but these changes were somewhat overshadowed by the extra $38.90 for singles and $29.40 each for couples, effective from September 20.
Yes, this larger than usual increase is definitely helpful for those already on an Age Pension, affecting about 3.5 million older Australians.
But let’s not forget the good news in the threshold changes for many other retirees.
These changes are also significant – with increases in how much you can earn and still be eligible in the order of $2000 per year for singles and just over $3000 for couples (combined).
This amount is not to be confused with the work bonus (moving from $7800 to $11800 during this financial year), which is applied once you have qualified for the Age Pension.
The actual disqualifying income amounts are now up to $58,318 for singles and $89,211 for couples per annum.
In line with these disqualifying income limits are increases also to the disqualifying assets thresholds.
These have increased by $13,000 for singles and $19,500 for couples (combined).
When taken together, these two new higher thresholds mean that of the nearly 40% of retirees in Australia who are self-funded, many will now be able to qualify for at least a part Age Pension.
This, in turn, means they will also receive pension supplements and a Pension Concession Card.
When household budgets are under more and more strain, every little bit counts, so qualifying for this guaranteed income stream is a huge bonus.
How do you know if you, too, will now get the pension?
We’ve made it easy for you by adjusting our Age Pension Entitlements Calculator ahead of time. You can enter your information and see if you now qualify today. And if you are unsure as to how these new thresholds work, you can easily book an adviser consultation for a one-on-one discussion about your financial needs.