When you’re in your 20’s and 30’s retirement can seem a lifetime away. But ironically that’s the perfect time to start thinking about it! Building your Super gradually over time is the ideal way to ensure you’ll have enough money to have the retirement that you want, not the one you have to have.
We understand that Super can be a little confusing and the rules seem to change frequently. We have some great information here to help you understand your Super better. In short we see Super as a bucket of money. You add money to your bucket whilst you’re working and then you take money out when you retire.
We can’t stress enough that investing time now to learn about Super and planning for your future will pay off handsomely for you in the long run. You can use our calculator to work out how much Super you will have in retirement.
Just click on the read, watch and do icons below to filter the information we’ve found for you to best match your style of learning. When you’re ready start planning for your future – start your journey here.
Age
1 Jan 1954 to 30 June 1955
66
1 Jan 1955 to 31 Dec 1956
66.5
On or after 1 Jan 1957
67
Assessable income
How much income you can earn before the Age Pension is reduced depends on your family situation as shown in the table below. These figures are indicative only. How income is assessed and what is included can be complicated. Please seek personal advice and assessment.
| Fortnightly Income | Reduction in Payment | |
|
Single Full pension rate is $772.60 per fortnight |
Up to $152 Over $152 and up to $1,697.20 Over $1,697.20 |
Full Pension 50cents for each dollar over $152 No Pension |
|
Couple combined Up to $268 |
Over $2,597.60 |
Full Pension 50cents for each dollar over $268 No Pension |
|
Couple combined who are |
Up to $268 Over $268 and up to $3,358.40 Over $3,358.40 |
Full Pension 50cents for each dollar over $268 No Pension |
Please note: The pension rates include the Pension Supplement of $60.60 for a single person and $96.40 for couples combined.
Income test example: A single person who earns $1,000 per fortnight is over the $152 per fortnight lower threshold. The pension payment reduces at the rate of 50 cents for each dollar above the threshold. Therefore the reduction would be $424 per fortnight (50cents X 848).
Assessable assets
In a similar way that the income test works, the Age Pension is scaled down as your asset position increases. This test depends on your family situation and whether you own your own home.
The rate at which the Age Pension is scaled down is $1.50 per fortnight (single person or couple combined) for each $1,000 above the lower threshold.
|
|
Homeowner |
Non-Homeowner |
|
Single |
Up to $192,500 (Full Pension) Over $707,750 (No Pension) |
Up to $332,000 (Full Pension) Over $847,250 (No Pension) |
|
Couple Combined Full pension rate is $1,164.80 per fortnight |
Up to $273,000 (Full pension) Over $1,050,000 (No pension) |
Up to $412,500 (Full pension) Over $1,185,500 (No pension |
|
Couple combined who are |
Up to $273,000 (Full pension) Over $1,303,500 (No pension) |
Up to $412,500 (Full pension) Over $1,443,000 (No pension) |
Asset test example: A married couple who owns their own home with assessable assets of $373,000 would be $100,000 over the lower threshold. The pension payment reduces at the rate of $1.50 for each $1,000 above the threshold. Therefore the combined reduction would be $150 per fortnight ($1.50 X 100).
Some final points:
When determining the rate of pension payable, both the income and assets tests are applied. The test which yields the lowest payment is the one that is used. Both tests are reviewed on a regular basis.
Other points to note include:
As you can see, there is a fair bit involved in understanding Age Pension Benefits available to Australians. It is an important aspect to understand as it can help to maximise the longevity of your capital in retirement.
“An increase in the Age Pension Age was proposed/announced in the 2014 Federal Budget. This increase would see Australian’s born after 1 January 1966 being required to turn age 70 before being entitled to the Age Pension”.