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The Pension Bonus Scheme- do you qualify?

by Lachlan Harvey

  LachlanHarvey
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Important – this could be the easiest $71,000 you ever make!

From 1 March 2014 no new registrations will be taken for the Pension Bonus Scheme. This change will affect you if you have not registered for the Pension Bonus Scheme before 1 March 2014, and have:

  •  turned age pension age before 20 September 2009
  • continued to work since turning Age Pension age
  • deferred receiving the Age Pension
If you do not register before 1 March you will never be able to claim a Pension Bonus payment. If you are already registered with the Pension Bonus Scheme, or register before 1 March 2014, you will be eligible to claim a Pension Bonus Payment under the existing rules.

What is the Pension Bonus Scheme?

It’s a lump-sum payment made as an incentive for people who work past their Age Pension age without claiming any Age Pension. 

How much is it worth?

The amount depends on:

  • the amount of Age Pension you are entitled to when you eventually claim (e.g. if you receive half the pension then you receive half of the maximum bonus)
  • the length of time you have been an accruing member of the scheme
  • whether you were single or partnered during the time you deferred

The maximum payments are: 

Years in the scheme

Single—maximum rate

Partnered —maximum rate (each)

1 year

$1,889.70

$1,428.50

2 years

$7,558.80

$5,714.10

3 years

$17,007.30

$12,856.70

4 years

$30,235.20

$22,856.30

5 years

$47,242.50

$35,713.00

What do you need to do?

Because the amount of bonus depends on the amount of pension it’s important to plan things well. Speak to your financial adviser or contact Centrelink Financial Information Service for more information.

 

Lachlan Harvey CFP®

Authorised Representative (227293)

 
     
 

Disclaimer Statement This newsletter contains general advice only and should not be relied upon as a substitute for financial product advice. None of the information takes into account the investment objectives, financial circumstances or investment needs of any particular investor.You must therefore assess whether it is appropriate, in the light of your own individual circumstances, to act upon the relevant information. It is advisable that you obtain professional independent financial advice before making any investment decision based on the information provided.