Maximize Your Pension: A Five-Step Guide for Australians
The five-step plan to maximising your pension
The Sydney Morning HeraldImage: The Sydney Morning Herald
Many Australians miss out on their full age pension due to lack of awareness and intimidation. Experts recommend applying early, understanding eligibility tests, knowing couple rules, clarifying tax implications, and utilizing available resources to maximize benefits.
- 01Australians can apply for the age pension up to 13 weeks before turning 67 to avoid delays.
- 02The family home is not included in means and asset testing for the age pension, alleviating common concerns.
- 03Couples have different income and asset assessments compared to singles, affecting pension eligibility.
- 04The age pension is considered taxable income, but many may not pay tax due to available offsets.
- 05Services Australia and Centrelink offer free resources and support to help navigate the pension process.
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Many Australians are not receiving their full age pension entitlement due to intimidation and lack of knowledge about the application process. Kate Rolfe, retirement experience lead at Aware Super, emphasizes that the age pension often works alongside superannuation and savings, making timing crucial. To maximize benefits, individuals should apply for the pension early, up to 13 weeks before turning 67, to prevent delays. Understanding the means and asset tests is essential, as the family home is not considered in these assessments. Couples face different rules regarding income and assets, and clarity on tax implications is vital since the age pension is taxable, although many may not owe taxes due to offsets. Lastly, utilizing resources from Services Australia and Centrelink can provide valuable assistance in navigating the complexities of the age pension.
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Understanding the age pension application process can lead to significant financial benefits for retirees.
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