Start getting organised early

You can submit your Age Pension claim up to 13 weeks before you turn 67, but I’d start planning about six months out.

Aim to get a clear picture of your overall financial position, including your:

• Superannuation
• Savings and investments
• Income
• Property and other assets
• Debts
• Partner’s income and assets, if applicable

Centrelink uses both an income test and an assets test to work out whether you’re eligible for the Age Pension and how much you could receive, and will usually apply whichever test results in the lower payment.

Working out roughly where you sit ahead of time can help you avoid any nasty surprises – and give you time to look at your options.

Apply as soon as you can

I recommend getting onto it as early as possible once you’re within the 13-week timeframe. Centrelink applications can take a fair bit of time to process – especially if information is missing or they need to come back to you with any questions.

To make it as painless as possible, make sure your myGov account is linked to Centrelink and start gathering the documents you’re likely to need before you start, such as bank account details, tax file number and evidence of your age, residency status, relationship status, income and assets.

Future you will thank you for it. 

Work out how much you could receive

Some people will sit below the income and assets test limits and may qualify for the full Age Pension. Others will receive a part pension, while some will be just over the cut-off.

Wherever you sit, it’s worth working that out before you apply – don’t just submit the paperwork and wait for Centrelink to tell you.

If you’re likely to receive the full pension, you can focus on making sure your remaining assets produce a steady, reliable income without taking more investment risk than you need to.

If you’re somewhere in the middle – or hovering around the upper limit – there are a few perfectly legitimate strategies worth looking at such as annuities and funeral bonds – check out my TikTok channel for more handy videos on these topics.

Don’t give money away just to receive more Age Pension

One of the biggest traps I see is people giving money away or spending it on silly things, purely to qualify for more Age Pension.

Please don’t make yourself poorer just to receive a slightly higher Centrelink payment, as the maths often doesn’t stack up.

Centrelink also has gifting rules. If you give away more than the allowable amount, the excess may continue to count under the income and assets tests for five years. In other words, you could give the money away, no longer have access to it and still have Centrelink treat it as yours, which isn’t an ideal outcome. 

By all means, help your children or other loved ones if you genuinely want to and can afford it – but make sure you understand the implications before handing over the money.

Don’t be afraid to get help

Your Age Pension entitlement matters, but it’s only one part of your retirement plan, and the rules around it can be an absolute minefield.

I’ve worked in retirement planning for more than 20 years, and it still takes around five to 10 hours to map out all the different options for a client.

That process might cover Centrelink, superannuation, investments, retirement income, contribution strategies and estate planning. It’s a long list – and process – because you can’t properly consider any of these areas on its own.

So, if you’re getting close to 67, my advice is to start early and get clear on your options before making any big decisions you can’t easily undo.

Watch my video on things to do before applying for the Age Pension or take my Free Retirement Assessment.

Want help understanding your options and advice that’s tailored to you? I’d love to help. Find out more about me and book a chat today.