At age 58, Australians are just two years away from being able to retire and access their superannuation and just nine years away from potentially receiving the Centrelink Age Pension payment.
But how much can you get? And how do you know if you're eligible?
Here's a breakdown of everything you need to know about the Age Pension at age 58 to make sure you're prepared when the time comes.
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1. Age Pension payments
The Age Pension is a fortnightly payment, paid by Centrelink, up to a maximum of $1,200.90 per fortnight for singles and $1,810.40 for couples combined.
These figures include the maximum basic rate, the maximum pension supplement, and the energy supplement.
But not everyone is eligible.
2. Eligibility requirements
To be eligible for the Age Pension, you must be at least 67 years old, an Australian resident, must have lived in Australia for at least 10 years in total and five of those years with no break.
Eligibility for the Age Pension is heavily dependent on your income level and the assets you own.
3. The asset test
The asset test includes everything you own, whether it's in full, in part, or you have an interest in. This includes any stocks, like S&P/ASX 200 Index (ASX: XJO) shares, property, superannuation, an SMSF, or possessions you own. It also includes assets held outside Australia and any debts owed to you. It generally excludes the home you live in.
In order to receive the full Age Pension, single non-homeowners have a higher asset threshold of up to $600,000, and a couple (combined) can own up to $766,000 in asset value if they don't own a property.
The good news is that you can earn over these limits and still earn a part Age Pension.
The cut-off point for a part-payment for single homeowners is $733,500, and $1,000,500 if you're a single non-homeowner.
Couples are also entitled to a part-payment, so long as their combined assets don't exceed $1,102,500 for homeowners.
Non-homeowners can own assets totalling up to a limit of $1,369,500. If your assets come in above the initial limits but below these thresholds, you're still entitled to some level of payment.
4. The income test
The income test assesses all of your income pooled from all sources. That includes anything from superannuation contributions, investment income, part-time wages, bonuses, passive income or commission payments.
To receive the full Age Pension, single Australians can earn up to $226 per fortnight. Then, couples can earn up to $396 per fortnight.
But you can earn more if you still have dependent children. Individuals can earn up to an extra $24.60 per fortnight for each dependent child without reducing their pension. Couples living together and both getting a pension can each earn an extra $12.30 per fortnight for each dependent child.
Again, the good news is you can go over the above thresholds and still earn a part-Age Pension.
Single Australians can earn up to $2,627.80 per fortnight, and couples (living together) can earn up to $4,016.80 per fortnight combined and still qualify for at least a part-Age Pension.
But if you earn over the income limit and below these cut-off points, your income is assessed on a sliding scale.
For a single person, your Age Pension will reduce by 40 cents for each dollar over $226 and for couples it will reduce by 20 cents for each dollar over $396.
5. Age Pension assessment
Centrelink assesses you under both an income and an asset test. But the two aren't added together. Instead, it applies whichever gives you the lowest rate of payment for your individual circumstances, which it calls a "lowest rule of two".
For example, if the income test calculates that you should receive around $400 per fortnight and the assets test calculates that you should receive $300, Centrelink will pay you the lower amount of $300 per fortnight.
