How much can you earn before it affects your pension 3



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If you’re at pension age or nearing pension age, chances are you might still be working or earning a little bit of money.

But how much can you earn before it affects your pension?

It turns out it’s not very much at all.

According to ASIC (Australian Securities and Investments Commission) if you’re single you can earn $164 per fortnight before your age pension drops.

The drop is 50 cents for every $1 you earn over $164.

So for example if you earn $600 a fortnight, your pension will drop by $218 per fortnight.

The maximum pension for a single is $794.80 (without supplements).

It’s a similar situation for couples.

If you’re a couple and both eligible for the age pension, you can earn $292 combined each fortnight before it affects your pension.

Earn anything more than that and your age pension will drop 50 cents for every dollar over the limit.

If you both earn $600 a fortnight, your combined pension will drop by $454 each fortnight.

For couples on the maximum pension of $1198.20 a fortnight (combined), that would bring it down to $744.20.

Even with the drop in your age pension, part-time work is still a great way to supplement your age pension until you’re ready to retire.

How much would you need to earn to lose the pension completely?

If you’re single you can still receive some form of part pension while earning up to $1911.80 a fortnight, while couples can still receive some pension while earning up to $2926.80 per fortnight.

Not sure when you are eligible for the age pension?

ASIC has an online calculator to help you out.

For example, if you were born in 1956 – you will be eligible for the age pension at 66 years and 6 months of age.

If you’re still not sure about the effect on your pension, it’s always important to check with Centrelink.

What do you think about the pension rate? Do you think it’s worth working part time while you’re on the pension?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. A single pensioner should be able to earn enough money each fortnight to take their earnings up to the minimum wage without loss of pension or entitlements. At present all pensioners are struggling to live a decnet life style while our politicians get a huge salary and can serve on boards and c ollect a massive pension and a job for the boys when they retire.

    1 REPLY
    • Good idea Rob. Makes sense. You should contact the party you voted for in the last Federal election and see how they stand with this idea. It would be interesting to see how this is received.

  2. Oz Care is a division of Government, to help the Enderley stay in their own homes. I desperately needed some weeding done and had been advised that ozcare did that for pensioners who needed the help friend is 69 her husband is 69, they rent their house, have never worked and get rent benefits. They can have the lawn and garden done for them at a cost of approx $7.00 , on going ,I am 82 live alone, paying my house off, and I am entities to a one off help and would have to find a private gardener. Why buy or own your own home ?.no rebate for rent/pay no help to maintain your garden, if you go for a government house, you will get a water front apartment, all facilities, all maintained at no cost. Children paid for at Childcare so you can sit around,I can’t understand the logic. Don’t work, don’t save, be a bludger and the government foots the bill. I am quite willing to pay my own way if and only if you do too

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