‘How much can I earn before it impacts my Age Pension entitlement?’

Feb 14, 2019
Deciding whether to work after retirement age, and if so, how much to work, is a careful balancing act to ensure your pension entitlement isn't impacted. Source: Getty

Q. I am eligible for the pension after the end of April 2019. I currently work full time but would like to reduce my hours as I am travelling an hour each way every day. My employees have asked me to stay on in a reduced capacity but I was wondering what you can earn before it affects the Age Pension and what the pension is reduced by if I work more than the maximum number of hours. I have tried to look this up on line without success, so I would really appreciate an uncomplicated answer to the above.

A.  If you go to my website www.noelwhittaker.com.au, you will find a pension calculator that will let you enter your own income details (or the details of what you expect to earn if you worked in a reduced capacity), and let the calculator tell you how much pension you would qualify for. The outcome will depend on whether you are a single or a couple.

Right now, the earnings cut-off figures are $79,736.80 per annum for a couple and $52,119.60 for a single. If you have financial investments such as shares or bank accounts, they will be given a deemed income that will also impact your pension payment. There is a deeming calculator on my website that you can use to tell you what deemed income Centrelink will attribute to your assets.

If you have a question for Starts at 60’s money experts, email it to [email protected].

Important information: The information provided on this website is of a general nature and for information purposes only. It does not take into account your objectives, financial situation or needs. It is not financial product advice and must not be relied upon as such. Before making any financial decision you should determine whether the information is appropriate in terms of your particular circumstances and seek advice from an independent licensed financial services professional.

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