"I am 68 years old and receiving aged pension. My wife works part time and earned $23,000.00 in 2021/2022. My pension was reduced to $14,800.00 because she works. Is this correct?"
- Question from Wesley in Ballendella, VIC
Top answer provided by:
Mohammad Hussein
The fortnightly age pension is dependent on the amount of income both you and your wife generate as well as the assets you own. The higher your combined income, the lower the age pension may be.
Employment income does affect your payment from Centrelink and you would need to regularly report your partner’s employment income to Centrelink.
The pension income test is designed to encourage pensioners to supplement their pension with additional employment income.
A pensioner couple can receive a certain amount of income before their pension rate starts to reduce. This is the income test free area which, at 1 July 2022, is $336 per fortnight for couples (combined). For each dollar of income above the income test free area, the pension is reduced by 50 cents.
I would need to know more about your financial situation to confirm if Centrelink is paying you the correct amount. You may seek clarification directly from Centrelink or contact Macarthur Wealth Management to review this. Contact page is https://www.macarthurwealth.com.au/contact/.
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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