At ART, we have a retirement income vision to be the leader in delivering better retirement outcomes for members through a lifetime of education, guidance and advice. Providing help with the Age Pension for income support fits right in with this vision.
The ‘Pillars’ of retirement income
In retirement, there are three main ways a member can support their income. Known as the three ‘pillars’ of retirement income, the first is a person’s own savings – including voluntary contributions they’ve made to super. The second pillar is the compulsory superannuation system.
The third pillar is the means-tested Age Pension, designed as a safety net for those older Australians who need it. And whether they receive the full or partial Age Pension, for many Australians it’s likely to be an important part of their income at some stage of their retirement.
Generally, to be eligible for the Age Pension, a member needs to be at least 67 years of age. As Australians can now access some or all (if they’re permanently retired) of their super from the age of 60, and unrestricted access to their super from the age of 65, it’s likely that most people will have drawn down some of their super before they’re eligible for the Age Pension.
If a member is eligible for some, or all, of the Age Pension, they may consider accessing that pillar of their retirement income as soon as possible, so their super will last longer in retirement.
It may not be as easy as it sounds, however. According to a survey conducted by financial advice firm, Retirement Essentials:
- 79% of prospective Age Pensioners surveyed say they want help with the Age Pension as obtaining the Age Pension is a source of stress and misunderstanding.*
- Only 44% of Australians reported applying for the Age Pension on time. The remaining 56% apply late and miss out on income they are entitled to. Nearly one third of which apply at least one year late, costing tens of thousands of dollars in severe cases. Missed payments are most often funded by withdrawals from super.*
ART has partnered with SuperEd to provide a service known as ‘Retirement Essentials’. This Age Pension concierge service will guide, assist and support ART members to apply for the Age Pension or Commonwealth Seniors Health Care Card to ensure they get all their Age Pension entitlements.
To find out more about Retirement Essentials, including the cost of the Age Pension concierge service, visit retirementessentials.com.au/art.
For more information on the Age Pension visit the ART website.
*Retirement Reality, Link Advice August 2022