Financial benefits for seniors

A variety of financial benefits for seniors

Let’s take a look at what’s available to help you in retirement.  

The Age Pension

The idea of the government funding our retirement may sound appealing but the reality isn’t quite so simple. The Age Pension is designed as a safety net only. In other words, it may put food on the table but don’t expect it to be your only source of income during re­tire­ment.

And the pension isn’t simply handed out without question. You will need to be at least 66 or older, and satisfy both an income test and an assets test.

As a guide, a single senior who earns less than $178 per fortnight may be eligible to receive the full pension. For a couple, their combined income must be below $316 per fortnight.^[1] Bear in mind this income includes returns on your investments and any income from super. 

Even if you meet the income test, you’ll still need to pass the assets test. A single retiree who has assets (other than their home) valued less than $268,000 may be eligible to receive the full pension. For couples, their combined assets (other than their home for homeowners) must be worth less $401,500.^[2]

Your rate of Age Pension will be the lower of the outcome under the income or assets test.

What about a part pension?

If you fail the test for a full pension, you could be eligible for a part pension. 

For instance, a single senior who earns less than $2,083.40 per fortnight (for couples $3,188.40 combined) may be eligible for a part pension. ^[3]

It is important to note that the benefit is not limited to the extra cash you receive. As a pensioner, you may be eligible for a Pensioner Concession Card, which lets you tap into valuable discounts including reduced cost medicines under the Pharmaceutical Benefits Scheme (PBS) ^[4], potential savings on power bills, council rates and more.

Seniors Card – a world of savings

Even if your income or asset levels mean you’re not eligible for a Pensioner Concession Card, you could still apply for a Seniors Card.

Each state and territory has a Seniors Card scheme and some reciprocal arrangements are in place for using your card in other states. The Seniors Card is free, and it provides a variety of concessions on transport, fares and discounts with participating businesses. 

To be eligible you need to be aged 60 or over and not working more than a set numbers of hours per week in paid employment, although eligibility criteria and benefits vary slightly between states and territories. ^[5]

Commonwealth Seniors Health Card

The Commonwealth Seniors Health Card is issued by the Department of Human Services and you need to have reached Age Pension eligibility age to apply. There is no assets test, but your annual income must be below $55,808 if you’re single, or $89,290 for couples combined.^[6]

The Commonwealth Seniors Health Card provides discounts on PBS prescription medicines, with other savings available through bulk billed doctor appointments, cheaper out of hospital medical expenses through the Medicare Safety Net, concessional rail travel on some services and more.^[7]

Next: Your guide to aged care

References

[1] https://www.servicesaustralia.gov.au/individuals/topics/income-test-pensions/30406
[2] https://www.servicesaustralia.gov.au/individuals/topics/assets/30621
[3] https://www.servicesaustralia.gov.au/individuals/topics/income-test-pensions/30406
[4] https://www.servicesaustralia.gov.au/individuals/services/centrelink/pensioner-concession-card
[5] https://info.australia.gov.au/information-and-services/benefits-and-payments/older-australians/seniors-card
[6] https://www.servicesaustralia.gov.au/individuals/services/centrelink/commonwealth-seniors-health-card/who-can-get-it
[7] https://www.servicesaustralia.gov.au/individuals/services/centrelink/commonwealth-seniors-health-card/who-can-get-it/income-test