In an ideal world, you would have enough superannuation savings to see you more than comfortably through your retirement.
However, not everyone can fully fund their own retirement. The Australian Government recognises this, and offers the Age Pension as a supplement to your retirement income.
The aim is that the Age Pension will make up any shortfall in your income. It is considered the minimum amount you can live on; it is not designed to fund a comfortable retirement lifestyle in and of itself.
HOW DOES IT WORK?
Depending on your birth date, from 1 July 2017 Age Pension age will be 65 years and 6 months. After that, Age Pension age will go up 6 months every 2 years until 1 July 2023.
The Age Pension is means-tested to ensure that payments go to those who need them. Most people will be eligible for a full or part Age Pension, even if they receive superannuation benefits.
To qualify for the Age Pension, whether in full or in part, you must meet the requirements of both an assets test and an income test. You will receive the smaller of the two pensions generated by applying these tests.
There are different rates of Age Pension payments for single people and couples. Read about how your relationship status can affect your payment rate.
The amounts on this page are the maximum rates as at 14 April 2020.
The Age Pension forms part of your taxable income. However, if it is your only source of retirement income, you will pay no tax. If you’re on the Age Pension, you also receive health benefits and reduced charges on rates, telephones, gas and electricity, car registration and public transport.
For more detailed information about the Age Pension, including the appropriate thresholds and other government benefits, contact Centrelink.
This is a sponsored advertising promotion by First Super Pty Limited (ABN 42 053 498 472, AFSL 223988) as trustee of First Super (ABN 56 286 625 181). This publication may contain general advice which has been prepared without taking into account your objectives, financial situation or needs. You should consult the Product Disclosure Statement (PDS) firstsuper.com.au/pds before making any investment decision. Before making a decision to combine your superannuation, you should consider any costs, change to insurance cover or loss of benefits that may apply and, if necessary, consult a qualified financial adviser. Past returns are not a reliable indicator of future returns. Content was accurate at the date of issue in July 2020, but may subsequently change. Please contact First Super on 1300 360 988 for updated information or to obtain a copy of the PDS. No commissions or fees are paid to NZ Relo as part of this promotion, apart from advertising costs.