"I will soon be eligible for a part age pension as I am under the threshold for assets and income test purposes. How will the income of my partner affect my pension payments? All assets are owned by myself. My partner is much younger and came into my life recently and only has earned income."
- Frank in Kuranda, North Queesland
Top answer provided by:
Wayne Leggett
Unfortunately, Frank, assuming that your partner lives with you, your assessment that you will “soon be eligible for a part age pension” is quite possibly, incorrect.
Applicants for Centrelink benefits who are part of a couple are assessed based on the couples’ tests for income and assets.
This means the higher thresholds for both assets and income will apply, as follows (as of March 20, 2021):
Assets Test
- Full Pension Pension Cut-out
- Singles $268,000 $585,750
- Couples $401,500 $880,500
- Income Test
Full Pension Pension Cut-out
- Singles $4,628pa $54,168.40pa
- Couples $8,216pa $82,898.40pa
Based on the above, unless your partner earns less than $28,730pa, their income will make the difference between you receiving a part pension and not.
Of course, the above depends on your definition of “partner”.
For Centrelink, a “partnership” is where the couple are married, or in a registered, or de facto relationship.
For the purposes of determining entitlement, you are deemed to be in a “partnership” from the time you commence living together in any such relationship.
I’m sorry if this information undermines your retirement plans, Frank, however, there may be ways to modify your circumstances to receive a Centrelink benefit where you may, otherwise, have not.
For example, you have stated that your partner is much younger, which suggests they are below Age Pension age.
If this is the case, their superannuation would not count as an asset, nor would it be “deemed” to be generating income assessed under the income test.
There may be legitimate planning strategies you can consider that would enhance your Centrelink entitlement.
Therefore, before approaching Centrelink, or deciding that there is no point bothering, it would pay you to consult with a financial adviser with experience with Age Pension issues.
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
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Comments4
"I receive a full aged pension, my husband is not retiring age and does not have a income. He has been offered a job getting $650.00 per week, how much will it effect my pension per fortnight."
Jackie Lewis 14:19 on 10 Sep 22
"My husband is an aged pensioner with no assets, i work in an aged care and earned 78k per year,will it affect my husband pension? If I stop or lessen my work hours the pension will not be able to pay for our house rent. Is there anyway that I can work full time that doesnt affect my husband aged pension?"
Maria Payne 20:15 on 06 Jul 22
"Good question. I'm in exactly same situation. What is the answer please"
Jo Adams 21:34 on 12 May 22
"I am eligible for the aged pension, however my husband still works and earns $75,000 pa. We have assets well below the limit. Will I get a full pension based on his income. I live in Adelaide. "
Cheryl Jones 01:02 on 04 May 22