As a client, you retire once, but our advisor goes through the retirement process with Services Australia (aka Centrelink) approximately ten to twenty times a year and have done so for the last ten years. Our advisor is a strong advocate for clients receiving the Age Pension, believing it helps extend personal savings in retirement and is a system clients have contributed to for many years. Some of the best client relationships have been built by assisting clients through this complex application process and advising them on strategies to maximise their entitlements.
Unfortunately, the Age Pension in Australia is more complex than retirement pensions in some other countries, like the UK, where everyone receives the same amount with annual increases. In Australia, the Age Pension is determined by the “asset test” and the “income test.” Additionally, the thresholds for these tests vary based on your home ownership and relationship status.