The Age Pension is a government benefit that provides a regular income to eligible residents over 65 years old to help pay for basic living expenses. You need to pass an income and assets test to qualify for this benefit. If you are wondering how many hours you can work on an aged pension it is dependent on the amount you earn, not the number of hours you work. As of 20 March 2024, single people can earn up to $204 per fortnight and couples up to $360 combined per fortnight before their pension payments are affected. Detailed information about the amount retirees can earn can be found on the Services Australia website.

Reasons Why Pensioners Return to Work

You might think that once you retire you may never need to work again, but the reality can be quite different for several reasons. Your circumstances may change, and you could find yourself needing extra money due to rising living costs, needing a new car, to allow you the trip of a lifetime or even much-needed home renovations. For others, working is a good opportunity to stay active, and socially connected.

Australians are now living longer meaning that in the future, retirement funding may need to last longer, which may encourage some retired people to join the "unretirement" force. If this is you and you are wondering how many hours can a pensioner work, there are a few factors to consider.

Working After Pension Age

If they are willing and able to do so, senior Australians are being supported to return to work by the Australian Government, by allowing them to keep more of their pension when they are earning an income again. The Pension Income Test and Work Bonus reward means the first $300 of fortnightly income is not assessed as income, and any unused amount of this income can accumulate in the Work Bonus income bank. This can later be used to offset future income that would otherwise be assessable under the pension income test. There is no time limit to the income bank and unused funds can be carried forward, over years if necessary.

Suspending Your Age Pension

Don't worry about "how many hours can I work after retirement in Australia", instead you need to consider whether your total fortnightly income will go over the cut-off point. If it exceeds this amount (which is dependent on your situation and circumstances) your Age Pension will be reduced to zero for that fortnight. If your total income exceeds the cut-off point for more than 12 two-week periods in a row, the Government will suspend your Age Pension payment for up to 2 years. However, you won't have to reclaim it if you start to earn less or stop working, and you can keep your Pensioner Concession Card for up to 2 years during the suspension.

Retirement, Or Unretirement?

For many of us, the idea of not going to work is a long-awaited dream. But like any desirable wish, the grass is often greener on the other side. Life is not set in stone, and sometimes the way we planned our future does not always work out as we imagined. That's why at Lifestyle Communities, we are certainly not retirement villages. Our vision is to create a community to live in with low-maintenance homes and facilities like sports and relaxation that are easily accessible. It is about creating a better lifestyle, and by reducing overheads it is easier to take your foot off the pedal where work is concerned.

Unlike a retirement village, you can move into a new home at Lifestyle Communities while you are still young enough to enjoy the good things in life and choose to continue working full or part-time. When you decide to downsize and free up some money that was otherwise tied up in assets, you get to live your best life, today.