You’ve worked towards it all your life, you’ve earnt it, you’ve reached retirement age, and now it’s time to apply for the Australian Age Pension. 

But it’s not as easy as phoning up Centrelink and asking to be added to a list. You’ll have to make a formal application and answer a few questions, which may require some back-up documents.

The first step is to check your eligibility to receive the pension in terms of your age, assets and length of residence in this country.  

Until 1 July 2023, the youngest eligibility age is 66 years and 6 months; after that, it is 67 years. 

You must also: 

• Be an Australian resident (that is, living in Australia on a permanent basis). 
• Be in Australia on the day the claim is lodged. 
• Satisfy government requirements on the length of time spent in Australia over your lifetime. In general, you will only qualify if you have spent 10 years or more in this country, five of them in a row. 

Aged pensions are also subject to income and assets tests.

According to the Department of Social Services, a pensioner can receive an amount of income before their benefit starts to be reduced. This amount may comprise income from investments, earnings or other sources, and is known as the “income free area”.

For each dollar of income over the income-free area, the single pension is reduced by 50 cents. Couples’ combined pensions are reduced by 50 cents. This means that for a pensioner couple, their individual pensions are reduced by 25 cents a fortnight for each dollar of income that the couple has over the income-free area.  

The “Work Bonus” allows seniors to earn $7,800 a year without facing any penalty. Until 31 December 2023, that maximum has been increased to $11,800. National Seniors Australia is advocating an extension of this scheme, to allow pensioners to earn more.   

There is also a pension assets test to ensure that people with substantial assets—property or possessions (not including the family home or other exemptions)—use those assets to meet their day-to-day living expenses before calling on the social security system for support. 

You can check your eligibility by visiting the Department of Social Services website .

You may need to produce certain documents to support your claim, including your birth certificate, passport, tax file number, and details of your income and assets.  

You can submit your claim through the myGov website or by calling Services Australia on 132 300. 

You may qualify to use the self-service facility or be required to attend an appointment at Centrelink to provide additional information and supporting documents.

Services Australia (formerly the Department of Human Services) will assess your claim and determine whether you are eligible for the Age Pension. They will notify you of their decision and the amount of pension you will receive. 

Once you start receiving the pension, you must report any changes to your income, assets or personal circumstances to Services Australia to ensure you continue to receive the correct amount of pension. 

If you disagree with a decision on your eligibility or amount of pension, you’re entitled to ask for an explanation and/or appeal the decision. 

Once you begin receiving your pension, remember that you are obliged to notify the government if your financial circumstances change.  

You may also need to advise of your travel plans if you intend to be away from the country for more than six weeks, as it can affect your pension supplement and energy supplement.