It’s Your Money > Social Security and Pensions

Australian Aged Pension and Early Retirement

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JohnH:
Hi there. I just posted a caution on an Aussie's thread but my experience may help others to make wiser choices.

I put away my coding pencil and wound down my business at 58. Early retirement allowed me to spend MUCH more time in the Philippines and I was happy, looking forward to a part pension.

I was living in Oz when I hit 65 and applied for the pension. With my travel history, they were sceptical that I was a PERMANENT resident. After several phone calls and sweet talking my case officer, I was granted the pension with portability. If YOU retire early, you may not be so lucky.

Renting my home gave me a modest income but I decided to make my move permanent and prepared my home for sale. I advised Centrelink and that put me close to the assets limit.
Three months later, my pension was CANCELLED!

Since I was overseas, the extra allowances with the pension were removed. This put me just OVER the assets test! I had placed the value on my home for Centrelink purposes - I should have guessed a little lower.

The GFC came along and my estimate proved wildly optimistic so I tried to get my part pension restored. Sorry, NO. You need to make a NEW application and now you certainly fail the residency requirements.
No safety net. If my investments fail, I will have to go back to Oz with my tail between my legs :-(

The moral of the story? Protect portability before pension age then watch your asset valuation.

brett4gam:
G'day JohnH

Mate sorry to hear all the dramas.  Things back home are ratshit. 

Luckily I'm not on a Gov't pension, I have a hurt on duty pension from the NSW coppers and I can live anywhere, the money just goes into my bank.  Also I don't qualify for an Age Pension there for that reason.

Hope it works out in your favour eventually.

cheers
Brett

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