Centrelink entitlements - a lifeline for retirees
Key messages
- Retirees and older Australians should check their eligibility for Centrelink benefits and financial support.
- The age pension is the key government financial assistance program and kicks in for most people at age 67.
- The elderly can also access government support related to healthcare, rent, housing loans, aged care and other costs.
As cost-of-living pressures hit many people across the nation, elderly Australians should get up to speed with government financial assistance that can be a lifesaver when they retire, or as they grow older.
The government agency, Centrelink, plays a key role in providing financial support to retirees through a range of benefits and pensions. As people transition to retirement, understanding and accessing Centrelink support can boost your financial security and help you enjoy a comfortable lifestyle.
Retirement planning advice can deliver specialist knowledge in this area and guide you and your loved ones on the best support options.
Age pension
One of the main benefits Centrelink can assist with is calculating the eligibility of the aged pension.
The pension is designed to provide income support for individuals who have reached the qualifying age, which is gradually increasing to 67 years of age for men and women. To be eligible, retirees must meet residency requirements and satisfy income and asset tests.
Different rates of age pension payments apply for single people and couples. They are reviewed twice a year. For the most up to date pension rates visit the Services Australia Website.
An income test assesses the amount of income that retirees receive from various sources, including employment, investments and superannuation. The asset test considers the value of assets in a retiree’s investment portfolio, including property, superannuation and shares. The results of these tests determine the pension payment that retirees are entitled to receive.
Health, housing and other benefits
Centrelink offers other benefits that can help retirees save money on day-to-day expenses, ensuring their retirement income stream lasts longer. For example, the Pensioner Concession Card provides access to a range of concessions on essential services such as healthcare, utilities and public transport. To get the card, you must be aged 60 or over and receive the age pension or other payments from Centrelink.
Seniors cards that offer discounts on public transport and some goods and services may also be available for those aged 60 and over and who are not working fulltime.
For retirees with limited income, the Commonwealth Rent Assistance program alleviates the cost of renting accommodation. This payment is designed specifically for retirees who are renting in the private market and may be battling to meet their housing expenses.
Retirees who are home owners may be eligible for the Home Equity Access Scheme, which allows them to get a loan from the government using their home as security. This scheme provides retirees with a regular income stream in the form of a loan, which is repaid upon the sale of their property or through their estate.
On the health front, the Commonwealth Seniors Health Card is designed to provide cheaper healthcare and some discounts if you have reached the age pension age and meet other conditions. A number of other government healthcare programs can help you reduce health expenses, including Medicare Safety Nets (which can cut out-of-pocket expenses for seeing doctors), the Pharmaceutical Benefits Scheme Safety Net (which can reduce costs for medicines) and free vaccinations and cancer screenings.
Don’t miss out
Government financial assistance can be a lifeline for older Australians, but navigating Centrelink benefits can be complex. It is important to stay informed about changes to benefits and eligibility criteria as they can affect entitlements and financial planning strategies.
To get clarity on entitlements, retirees may benefit from seeking advice and assistance from a financial adviser. These professionals can explain your options and entitlements, maximise your financial situation and help you plan and budget for a secure transition to retirement.