Maximising age pension benefits can be a great way to have added financial security and peace of mind for the golden retiree years. Whether you’re looking to supplement your income or simply want to make sure you’re getting the most out of your government benefits, read on for some helpful information.
The age pension can assist in reducing the overall cost of daily living expenses. Exploring ways to maximise age pension entitlements can be beneficial in providing you with extra money to cover medical costs, insurance premiums, and other daily expenditures.
Retirement looks different for everyone; personal circumstances and financial situations have an impact on how and when we retire. Doing some research specific to your situation will help to give you a greater understanding of your entitlements and be able to look into all the available options once you reach pension age.
Ways to maximise your age pension benefits
Prepay some expenses
Prepaying expenses is a smart way to plan for retirement. By paying expenses such as car and private health insurance annually, there is usually a discount that can reduce your overall bill.
Prepaying can also provide greater budget control, allowing a longer time to save for bills and enabling some lump investments to potentially provide some payments with interest.
Check for additional age pension entitlements.
In addition to the age pension, there are other additional payments available to pensioners in Australia. They are;
Is a government-issued card that provides holders with discounts on many goods and services such as utility bills, medical expenses, and transportation for both public transport and vehicle registration.
Entitles Australians over a certain age to lower pharmaceutical costs, access to free health care services, and is another way to subsidise travel on public transport systems
This card offers people who have retired from employment the same benefits as those provided by the Seniors Health Card, but also includes additional entitlements such as a petrol discount of 4 cents per liter and telephone allowance.
You can use the payment finder at Centrelink’s website to check your eligibility for other entitlements, there are around 50 payments that can be applied for.
Value your assets
It is important to try and remember to value any assessable assets at market value rather than the purchase value. This is because most of our personal assets depreciate over time with use while others may increase, which can affect age pension payments.
For example, if you own your home, it doesn’t count towards your asset limit so you may still be eligible for benefits regardless. It is also important to update Centrelink when assets change in value, as this will impact on your pension payments.
Additional ways to boost retirement income.
The work bonus incentive for age pensioners is a great way to help those who have reached the age pension age but still wish to remain employed. This program helps to ensure that individuals eligible for the age pension can continue to earn money without impacting their pension eligibility or benefits.
This means that eligible people will be able to receive additional income while also retaining their current age pension entitlements which are not included in an income test.
Additionally, any unused portion of the person’s Work Bonus can be carried forward, which can provide an even greater opportunity to supplement earnings without substantially affecting their eligibility for Age Pension benefits.
Tax concessions available to age pensioners.
The age pension can make a big difference to your taxes. Depending on your circumstances, you may be eligible for certain concessions and other tax benefits associated with the age pension. The seniors and pensioners tax offset reduces the amount of tax you must pay each year. Understanding these taxes and concessions can assist in ensuring that you maximise your pension payment.
Staying up to date.
Changes may occur to the age pension that you should know about as it may increase the amount of your pension entitlement.
Keeping up to date with information about the Age Pension changes can be an arduous task. Fortunately, the Department of Human Services (DHS) website has all the information you need to stay informed on any change that may come up in relation to the age pension.
