A very good lady asked whether moving to Aged Pension (AP) from Disability Support Pension (DSP) was the best thing to do and was there any pros or cons? I connected her (our Connect/Assist service) to the advisor for clarification.
While the amount paid stays the same, the main consideration when leaving DSP is that it may mean you loose certain benefits such as the incentive allowance, mobility and rent assistance allowance, as well as services and concessions from other providers. It is best to make a few calls and list the benefits and draw-backs on paper, with a column for each payment and the pros and cons that relate to you.
The Department of Human Services website explains more –
When you reach age pension age
Just before you reach age pension age, we’ll invite you to transfer to Age Pension.
You’ll need to tell us if you:
- want to transfer to Age Pension, or want to stay on Disability Support Pension, and
- have any superannuation
What won’t change
Whether you transfer to Age Pension or stay on Disability Support Pension some things won’t change, such as:
- your rate of payment
- the income and assets tests
- your concession card
- access to the Work Bonus
- payments being taxable
- rules to assess permanent blindness
Benefits of each payment
If you transfer to Age Pension:
- there are no medical eligibility rules or medical reviews
- the rules may be better if you want to travel outside Australia, and
- and live on a single title of land covering more than 2 hectares, we can exempt more land from the assets test
If you stay on Disability Support Pension, you may:
- get the Pensioner Education Supplement and Education Entry Payment if you study
- continue to get the Incentive Allowance
- keep the higher rate of Mobility Allowance
- get a higher rate of Rent Assistance if you’re single and sharing privately rented accommodation
Other services and concessions
Read more about how to transfer to Age Pension.
Got questions? If you want experts who have years of helping others, without the hype then call for a FREE strategy session today
No obligation call 0407 361 596, Paul