Itís Your Money > Social Security and Pensions

Australian Aged Pension and Early Retirement


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.

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.



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