Note: this information is current at the time of publication, 2 September 2015. If you are seeking information on the changes to the Age Pension assets test rules announced in the 2015 Commonwealth budget, and taking effect from 1 January 2017, read our article 2015/16 budgets - what they mean for you.

When you are planning your retirement, it is important to be aware of all the options available to help you enjoy the most comfortable lifestyle.

GESB's Retirement Income Pension (including our RI Allocated Pension and Transition to Retirement Pension) is a flexible retirement income option providing a regular income stream from your retirement savings. This pension may work in conjunction with the Age Pension to ensure you receive an adequate retirement income.

What is the Age Pension and how do I qualify?

The Age Pension is a Commonwealth government scheme that provides income support and access to a range of concessions for eligible older Australians. It acts as a safety net for those who may not have had the opportunity to accrue enough savings for their retirement.

To qualify for Commonwealth government's Age Pension payments, you will need to meet eligibility requirements. These include being 65 years or older, residential conditions and an income and assets test.

From 1 July 2017, the qualifying age for Age Pension will increase from 65 years to 65 years and six months. The qualifying age will then increase by six months every two years, reaching 67 years by 1 July 2023.

You will need to meet the cap on both the income test and the assets test to be eligible for Age Pension payments.

The amount of support you receive is determined by the results of these tests. The total balance of your super or Retirement Income Pension account will be taken into consideration in this test.

Income test

To receive the full Age Pension as a single person, you can currently earn up to $162 per fortnight. Any earnings over this figure will reduce the amount by 50 cents for each dollar earned over the $162.

To receive the full Age Pension as a couple, you can currently have a combined income of up to $288 per fortnight. Any combined earnings over this figure will reduce the amount by 50 cents for each dollar earned over the $288.

The cut-off point for the Age Pension is $1,909.90 for singles and $2,922.80 combined for couples. This means that if your fortnightly income reaches these amounts, you will not be eligible for Age Pension payments.

For more information about the income test, or to see how your income would be assessed, visit the Centrelink website.

Assets test

Generally, the value of the property and investments you or your partner own or have an interest in - excluding your principal home - are assessed in the assets test.

To qualify for a full pension, a single homeowner's assets must have a value less than $205,500 and for a non-homeowner's assets, the total value of the assets must be less than $354,500. For a couple with combined assets, these amounts increase to $291,500 and $440,500 respectively.

The assets test limit for a single part-pensioner who owns their own home, is less than $788,250 and for a non-homeowner, it is less than $937,250. For a couple, these limits increase to $1.170 million and $1.319 million respectively.

The asset test limits are updated in January, March, July and September each year. For more information about the assets test, and a full list of the types of assets that are included and excluded in this test, please refer to the Centrelink website.

Commonwealth Seniors Health Card

If you are not eligible for the Age Pension, you may still be able to receive discounts through the Commonwealth Seniors Health Card (CSHC). This card provides access to cheaper prescription medicines, Australian government-funded medical services and other government concessions.

To qualify for the CSHC, you need to meet eligibility requirements. To find out more, refer to the Department of Human Services website.

Additional information and services

If you would like more information to help you prepare for your retirement, GESB offers a range of seminars as part of your membership.

You can also use the Financial Information Service (FIS) provided by Centrelink. For more information, visit the Department of Human Services website or speak directly to a FIS officer by calling 132 300.