What Is an Age Pension?

Purpose of Payment/Benefit

The Age Pension is designed to provide income support to older Australians who need it, while encouraging pensioners to maximise their overall incomes. The Age Pension is paid to people who meet age and residency requirements, subject to a means test.

What is the difference between old age pension and Social Security?

Pension plans are funded privately by a combination of company and employee funds. Social Security has a disability income program, but pension funds do not. Social Security recipients are subject to a graduated income tax based on their income. Only a portion of Social Security benefits is taxed.

Who qualifies for age pension in Australia?

Generally, to be eligible for the Age Pension, you must: be age 66 and 6 months or over, depending on when you were born. be an Australian resident and have lived in Australia for at least 10 years. meet the income and asset tests.