Plan ahead and you won’t miss out

When it comes to preparing for retirement, the sooner you get help, the better, writes TIM ANDERSON, TelstraSuper’s chief customer officer

Some opportunities are time sensitive (and depend on your age, employment status and more), so don’t let them pass you by.

If receiving the age pension is part of your plan, learn the thresholds now and sort out any financial gifts you wish to give early as they may affect the amount of pension you receive.

“Even the most financially prepared retiree may be able to receive some extra support in retirement. Having a plan and getting good financial advice early can help set you up for a retirement even better than you imagined,” says Anderson.

Know your numbers

A large percentage of retirees qualify for some level of government age pension. A single person could get up to $936.80 a fortnight, while a couple could get $706.20 each.

Centrelink applies two tests: for income (how much you earn) and assets (the value of what you own). The test resulting in the lower pension rate will be the one applied

To access the pension, you’ll need to be above the current qualifying age. If you’re eligible, you may also qualify for the pension supplement and energy supplement, which could see you get up to an extra $89.70 for singles or $67.60 each for couples.

If you qualify for any amount of age pension you may be able to get a pensioner concession card. If you’re eligible, it will automatically be posted to you. This can get you discounts on a number of bills, public transport, medicines and more.

If you want to financially help family or friends by giving away assets or money, it may affect your age pension. You can gift up to $10,000 each financial year, limited to $30,000 over five financial years. After this, the excess will form part of your assets and will be deemed under the income test.

Can’t get the pension?

You still may be eligible for the Commonwealth Seniors Card. Exact entitlements vary by state and local council, but the card could get you cheaper medicines under the Pharmaceutical Benefits Scheme, plus discounted electricity and gas bills, property and water rates, and public transport.

You’ll need to meet an income test ($61,284 a year if you’re single or $98,054 for couples) but no assets test is applied. You’ll also need to be of age pension qualifying age.

See if your super fund offers webinars or seminars for members in or nearing retirement – many are complimentary and provide a wealth of knowledge.