Age Pension Age
The Age Pension Age is the minimum age for claiming an Age Pension from Centrelink. The community generally assume that average person would no longer be physically and mentally strong enough to earn a full wage on reaching Age Pension Age.
The Australian community is willing to support people who are unable to work but have no other income. Social Security Pensions are available for adults who are unable to work because of disability including age related frailty.
The Age Pension is a means tested income support benefit for Australians who are so old as to be considered incapable of working. The Age Pension Age is the age when you are considered to be ‘too old to work for a living’.
Thus the Age Pensions is available to Australians who have reached Age Pension Age.
The first Australian Age Pension Age
Last century the Age Pension was for men who had reached age 65 years. The original system allowed for women to start an Age Pension at 60 years. The different Age Pension Ages for men and women would have allowed for both members of a typical married couple to start an Age Pension as soon as the husband retired on his sixty fifth birthday.
Remember that back then before homes had any “whitegoods” most wives undertook vigorous physical work within the home. The husband’s wage would have been enough cash income for the couple to live on. His basic wage alone was far above the cut off income for an Age Pension.
Increasing the female Age Pension Age
The Age Pension Age for women increased gradually in response to general improvements in community health and the move towards equality.
The first increase in the Age Pension Age for women applied from July 1995. Regular increases in the Age Pension Age for females of six months every two years moved the Age Pension Age up by five years.
Women born before July 1935 had an Age Pension Age of sixty years. The first women impacted by the increase in the female Age Pension Age were those born in July 1935. The last women to have earlier access to the Age Pension than men were the women born in 1948. These women had an Age Pension Age of 64 years 6 months.
Women born after 1948 have the same Age Pension Age as men. Thus in January 2014 ‘equality’ was achieved with an Age Pension Age of 65 years for both men and women.
Increasing male and female Age Pension Age
When the Age Pension was established many people were physically struggling to keep working into their sixties. Australians generally completed their compulsory schooling and entered the workforce at age fourteen years. Those who survived to Age Pension Age welcomed a regular income for their twilight years. The seniors who lived through the Great Depression and World War years also experienced significant health challenges.
Their post war baby boom children were blessed with good nutrition and effective treatments for the serious infections that impacted earlier generations.
The general health of the community is still improving. We are living longer and staying fit enough to work for much longer than our grandparents could. Therefore as a community, we are deferring our retirement a little. Overall we might just be returning to a fifty year working life from finishing school to Age Pension Age.
In response to the general increase in health and fitness, the Australian government has legislated for the Age Pension Age to increase. Remember that the Disability Support Pension is available for Australians who are not capable of working until Age Pension Age.
The Age Pension Age is now increasing gradually for all Australians.
Legislated increases in Australian Age Pension Age
As from July 2017, the Age Pension Age increased to 65 years and 6 months.
The next increase in the Age Pension Age will be to 66 years effective from July 2019.
Two further increases of six months each are legislated for July 2021 and July 2023.
As from January 2024 the Age Pension Age will be 67 years. If you were born in January 1957 or later, you could apply for an Age Pension once you reach your Age Pension Age of 67 years.
Further increases in Age Pension Age
The Age Pension Age might continue to increase to 70 years for today’s youth. The Commonwealth parliament could legislate for more small increases in the Australian Age Pension Age.
Other economically advanced countries are considering a minimum age of sixty seven years for an equivalent social security pension. Some European countries intend to link improving life expectancy with further increases in their state retirement ages.
Help to understand how your situation fits in the Age Pension system.
Christine at Financial Care Services writes this Age Pension Guide. She can help you to understand your Age Pension situation.
Ask Christine to help you navigate your Age Pension challenge.
Contact Christine at Christine@financialcareservices.com.au or call 03 9808 0338 to book a consultation.
Christine at Financial Care Services is experienced with Pension Applications and the many Centrelink financial means tests.
Financial Care Services helps seniors with Centrelink Pension issues. Christine at Financial Care Services could help you check if you are eligible for an Age Pension.
An estimate of your potential Age Pension amount before you apply could spare you a rejection letter from Centrelink.
Financial Care Services offers ‘personal financial factual information’ consultations to help you check your asset and income position against the Centrelink Pension means tests. Christine is also able to assist with filling in your Centrelink forms ready for you to sign. She will accompany you to a Centrelink office to lodge your Pension claim form and show your proof of identity documents.
Financial Care Services charges hourly rate fees for ‘personal financial factual information’ consultations, assistance with personal data collation, completing Centrelink forms and attendance at a Centrelink office with you. Email Christine@financialcareservices.com.au now for the Financial Care Services Client Services Guide and Financial Care Services Age Pension Personal Data Checklist.
Disclaimer This Age Pension Guide is based on our understanding of the current Social Security provisions. Your claim for a Social Security Pension will be based on your personal situation as documented to Centrelink and the Social Security legislation and Regulations in force at that date.
Updated 22 May 2018
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