Do you qualify for the full age pension? Here’s how to find out

The Age Pension is a fortnightly sum to help older Australians fund a basic retirement lifestyle.

It is a maximum payment fortnightly payment of $1,100.30 for single Australians or older. Couples can get up to $829.40 per person per fortnight.

The rates don’t include any additional potential supplement rates.

The issue is that many Australians miss out on payments because they don’t really understand how the system works.

Here’s how to check that you’re entitled to.

1. Eligibility requirements

To be eligible to receive the Age Pension you need to be aged 67 years, or older. You also need to be an Australian resident who has lived in Australia for at least 10 years, with at least five of those years in a continuous period.

You’ll also be subject to an income and an asset test.

2. The income test

The income test assesses all of your income pooled from all sources. That includes anything from superannuation contributions, investment income, part-time wages, bonuses or commission payments. It’s applicable regardless of your age. 

In order to receive the full Age Pension, singles can earn up to $218 per fortnight, and couples can earn up to $380 per fortnight.

3. The asset test

The asset test includes everything you own in full, in part, or have an interest in. It generally excludes the home you live in.

In order to receive the full Age Pension, single homeowners can own assets (including superannuation) up to a value of $321,500, and non-homeowners can own assets up to $579,500 in retirement.

But a couple has a different threshold, and it’s not double the amount of one person. A couple combined can own up to $481,500 in total if they own a property, or $739,500 if they don’t.

4. What if I’m over the limits?

If you’re over these limits then you won’t qualify for the full Age Pension payment.

But the good news is, you could still be eligible for a part-payment.

Singles can earn up to $2,619.80 per fortnight and couples (living together) can earn up to $4,000.80 per fortnight and still qualify for at least a part-pension. Couples living apart due to ill health can earn a little more, at up to $5,183.60.

The payment is assessed on a sliding scale. For a single person, your Age Pension will reduce by 50 cents for each dollar over $218 per fortnight (up to the maximum allowed income of $2,619.80) and for couples it will reduce by 25 cents for each dollar over $380 up to the upper limit.

There is a similar rule for your assets too. If your assets are less than $722,000 if you’re a single homeowner, and $980,000 if you’re a non-homeowner, you are still entitled to some level of payment.

Couples are also entitled to a part-payment so long as their combined assets aren’t more than $1,085,000 for homeowners. Non-homeowners can own assets totalling up to $1,343,000.

The post Do you qualify for the full age pension? Here’s how to find out appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.