Is the Age Pension part of your Retirement Income Strategy?

From 1 July 2017, the qualifying age for Age Pension will increase from 65 years to 65 years and 6 months. The qualifying age will then increase by 6 months every 2 years, reaching 67 years by 1 July 2023.

The age pension may help to support you in to retirement. To qualify, you must first satisfy age and residence requirements. How much you get depends on your income, assets and other circumstances.

If you are a self-funded retiree or still working, you may be able to get a part pension.

You will face a large number of decisions regarding your retirement such as how long do you want to continue working? Do you want to stay working part time? Do you want to sell your family home to downsize? Or are you ready for a tree/sea change? Do you want to claim the age pension in part or full?

A financial advisor can help you with some of those decisions and to plan a retirement strategy that will work for you and your choices.

If you do want to claim the age pension, then you will need to submit an application. It is a lengthy process that will take excellent record keeping and patience as you work your way through the steps. Depending on your situation, the application contains close to 150 questions, covering everything from your basic contact information through to a person’s company and trust details if applicable.

You need an understanding of what you are entitled to as eligibility is based on age, residence, income and assets. The Social Security Act sets out the legislative base for the qualification and payment of the Age Pension.

For most people, the age pension is not something they even think about until they are ready to retire and even then it can appear as a large hurdle to negotiate when you are finally ready to relax and take things easier.

If you have any questions or would like to discuss your retirement strategy, please contact me rose@roseguerin.com.au

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