New research has found that tens of thousands of retirees are missing out on the aged pension because they are confused about the rules.
Superannuation giant Cbus, which manages more than $110 billion of retirement savings for its 925,000 members, has found that nine in 10 members nearing retirement lack confidence in understanding their entitlements.
Research from MUFG also found that only 44 per cent of members applied for a pension as soon as they were eligible.
Tens of thousands of retirees are missing out on the age pension because they are confused about the rules. (Nine)
Twenty-four per cent waited within a year, while 32 per cent waited more than a year before applying.
“One in three Cbus members, together with their partners, could be missing out on up to $46,000 per year through late Age Pension applications,” said Cbus Super Acting Chief Members Officer Bernie Dean.
“But low confidence and complexity means many are leaving money on the table.”
“A couple missing out on around about $900 a week in pension entitlements each week that you delay applying for it.”
“That is punching a huge hole in somebody’s retirement lifestyle.”
Those delays are costing retirees, such as former pest controller Joseph Bagnatto, who thought it would be a straightforward process before it ended up taking seven weeks.
“Very frustrating and too hard if you don’t know what you are doing,” he said.
“They send on email or app all this paperwork, I still don’t know how much I can earn on a pension.”
The delays are costing some retirees hundreds of dollars every week. (Getty Images/iStockphoto)
Some also find income and assets confusing.
Singles can earn up to $2575 a fortnight and have up to $714,500 in assets, not including the family home, and still qualify for a part pension.
For couples, it’s $3934 a fortnight and $1,074,000 of assets.
“A lot of people think that they’ve got to go it alone just on their super savings, and they don’t actually know that they would be eligible for the pension,” Bernie Dean said.
Joseph Bagnato found it easier to outrun his grandson than apply for the age pension. (Nine)
Future retirees can apply 13 weeks before turning 67.
It currently takes 32 days to process the average application.
The easiest way to get started is to consult a Financial Information Service Officer from Services Australia (132 300).
The bottom line is simple: get organised early so you don’t leave money on the table.