Centrelink – Moving to Aged Pension from Disability Support Pension? What are the pros and cons?

Centrelink – Moving to Aged Pension from Disability Support Pension? What are the pros and cons?

Centrelink – Moving to Aged Pension from Disability Support Pension? What are the pros and cons?

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:

If your partner gets Wife Pension they can also get the Pensioner Education Supplement if they study.

Other services and concessions

Before you decide to transfer to Age Pension, you should check if you’ll still be eligible for any services or concessions you currently get from other providers.

Read more about how to transfer to Age Pension.

Get your FREE 5 Easy Steps to Plan Retirement One-Page planner from the Resources

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

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About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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