Thinking about retiring - Jim's story
Jim has recently celebrated his 65th birthday. Jim has owned a plumbing business for many years. He is now thinking about retirement and what assistance may be available to him.
Jim does not have to stop work or close down his business to apply for Age Pension.
Age Pension is a taxable payment and is subject to an income and assets test. If Jim continues to operate his business any profit or assets of the business will be included when assessing his income and assets.
If Jim is eligible for Age Pension
If Jim is entitled to Age Pension he will be paid each fortnight. The Age Pension includes a pension supplement to assist with the costs of regular bills such as energy and rates.
Jim will also receive a Pensioner Concession Card, to help reduce the costs for medicines under the Pharmaceutical Benefits Scheme. It may also make Jim eligible for a range of additional concessions from the Australian Government and his State Government.
If Jim is privately renting his accommodation, he may also receive some Rent Assistance for the costs of renting privately.
If Jim is not eligible for Age Pension
If Jim is not entitled to Age Pension, he may qualify for a Commonwealth Seniors Health Card.
The Commonwealth Seniors Health Card will assist Jim with the costs of prescription medicines and other health care services. It is not assets tested but an income test will apply.
If Jim is entitled to a Commonwealth Seniors Health Card he will also receive Seniors Supplement.
Seniors Supplement is a non-taxable or income and assets tested payment that is paid quarterly to assist with the cost of regular bills such as energy and rates.
Free help with decisions
Jim also has funds invested in superannuation but he is not sure how best to use this money. Some of his friends have purchased income streams and he would like to know more about these investments as well as get some advice from Centrelink before he makes a decision.
A Financial Information Services Officer can assist Jim to make informed financial decisions and understand the implications of those decisions. Financial Information Service Officers are available to provide information to you over the phone, at interviews or through financial education seminars.
After discussing his options with the Financial Information Service Officer, Jim decides to work less hours. He enjoys his business and wants to stay involved; the income from his investments combined with his part Age Pension, the Pensioner Concession Card and Pension Supplement to help with the costs of medicines and other bills, will give him a comfortable retirement.
More information
- Financial Information Service (FIS) seminars
- Pension Bonus Scheme section
- Pension Loans Scheme section
- Retirement section