‘I moved from disability to the Age Pension and my payments dropped! What happened?’

Jun 21, 2019
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Working out how your income and assets impact your Age Pension can be confusing. Source: Shutterstock.

Q. How does Centrelink work out the income test? I have been on Disability Support Pension since 2007 and now have just reached Age Pension age. I gave them all my superannuation and bank details, and Centrelink have come up with income of $7,859.59 a year. My super balance was $268,000 and bank balance around $5,000. It’s a waste of time trying to get any information out of them. So my pension has dropped from $916 to $861 per fortnight. I’m confused. I’m single and a home owner, with assets of $3,500.

A. If you are not earning any income, Centrelink will simply apply the deeming test to your financial assets which you say are $273,000. If you go to the deeming calculator on my website you will find this sum gives you a deemed income of $312 a fortnight. If you then put this number in the ‘income per fortnight’ column on my Age Pension calculator you will see that your pension should be $875.70 a fortnight. These figures include supplements, so the numbers appear close to what you are getting.

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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