Common Mistakes When Applying for the Age Pension

We often meet with people who don’t apply for the Age Pension because they incorrectly think that they are not eligible. Often people incorrectly think that their assets level or income is too high to receive a benefit. 

Some of the most common mistakes that people make are:

• Incorrectly including the family home as an asset.  Your primary residence is usually exempt from the assessment, meaning its value won't affect your eligibility or payment rate. 
• Another common error is overestimating the value of assets. For example, people might overstate the value of their car, personal belongings, or household items.  Often people will put down the insured value of their goods but Centrelink will accept the value that you could sell your goods for and this is often lower than the insured value. 
• Including a partner’s superannuation if your partner is under the age pension age.  Superannuation is not considered an asset if your partner is not eligible for the age pension. 
• Including income that is not counted under the Income Test. For instance, income from account-based pensions (also known as allocated pensions) is generally exempt from assessment. This means that the income you receive from these pensions won't affect your pension payments.

Navigating the Age Pension Asset and Income Tests can be challenging, but understanding the rules and avoiding common mistakes is crucial to securing your financial support during retirement. It's essential to seek professional advice or consult the Department of Human Services to ensure accurate and fair assessments of your assets and income. By doing so, you can maximize your Age Pension entitlements and enjoy a more secure retirement.

This blog contains general and factual information and does not take into account anyone's individual objectives, financial situation, needs or tax circumstances. We strongly recommend you contact one of our Advisers if you would like personal advice.

Redpoint Investment Holdings Pty Ltd (trading as CY Financial Advice), is a corporate authorised representative (No. 378099) of CY Financial Services (AFSL No. 509648)