The big changes coming to the age pension you need to know

As July 1 approaches, significant changes are on the horizon for the age pension system that directly impacts individuals aged 60 and above.

While the amount of money you receive will remain the same, the thresholds for determining how much you are eligible for have undergone some adjustments.

The changes to the thresholds will mean more people will now be eligible to receive the age pension but it’s important to have a thorough understanding of the upcoming changes to avoid any nasty financial surprises.

As reported by Retirement Essentials, the changes coming to the income thresholds and asset thresholds include:

Full Age Pension income threshold increases by:

• Singles threshold will increase by $14 to $204 per fortnight.
• Couples threshold increased by $24 to $360 per fortnight.

Full Age Pension assets threshold increases by:

• Single homeowners threshold $301,750, increase is $21,750
• Single non-homeowners threshold $543,750, increase is $39,250
• Couple homeowners combined threshold $451,500, increase is $32,500
• Couple non-homeowners combined threshold $693,500, increase is $50,000

In addition to these upcoming changes, those on the age pension received a boost to their social security payments when indexation of their payments occurred earlier this year on Monday, March 20.

Age Pension, Disability Support Pension, or Carer Payment recipients received a fortnightly boost of $37.50, while couples together received an additional $56.40.

The maximum fortnightly rate of pension increased to $1064 for singles and $1604 for couples, including Pension Supplement and Energy Supplement.

Minister for Social Services, Amanda Rishworth, said the Government knows that Australians “are feeling the pinch” and the increase was to support those in need.

“Indexation is a pillar of our social security system and we want more money in the pockets of everyday Australians so they can better afford essentials,” Rishworth said at the time.

“The increase is an important part of the system and helps those doing it toughest.”

The age pension is the most common form of income support available to older Australians. According to the latest data from the Australian Institute of Health and Welfare, as of March 26 2021, approximately 2.6 million people received the age pension or 62 per cent of the population aged 65 and over.

You can find out what payments and services you are entitled to via the Services Australia website.

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.