 Relying on the Government age pension for your retirement could set you back financially if you don’t understand the age pension and how much you would receive. The maximum amount a couple can receive through the Government age pension is $1,682.80* per fortnight or $43,752.80* per year. An average retired couple that has one dinner out a week, one domestic holiday per year, one international holiday every two years and no home loan repayments, would be comfortable on a tax-free income of $60,000 per year based on research by the Australian Financial Security Authority (AFSA). Meaning if you were on the age pension you may not have a comfortable income as a couple.
The age pension amount can also be reduced based on the income and assets test. Meaning if your income is higher than the threshold or your assets are higher than the threshold, it would reduce the amount of age pension you can receive. Your superannuation funds are accessible tax free from age 60, however the age pension is only accessible from age 67. If you would like to retire at age 60, you should consider if you will have enough in your super for your retirement. If you want to ensure you have enough funds for retirement, feel free to contact us and we can discuss your superannuation outlook. *Information correct as of 1 July 2024. Comments are closed.
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