PFRDA

How does the general, Australian old-age pension scheme work?

Here in New Zealand, if I am not mistaken, we need to work 10 years total (5 before we turn 50, and another 5 afterwards, but before we turn 65) to qualify for the standard government pension, which is basically the same for everyone, regardless of height of income. Is it the same system in Australia? I once heard it's referred to as a superannuation scheme there, so there's the first difference already.

Public Comments

1. they take them to the great barrier reef when they turn 65, chum the water with blood, and make them swim back, if they make it, they get whatever they want.
2. This is one thing you never find out until you're with it. Maybe it's the same, but I really doubt it. Franky
3. There is no requirement that you have worked at any point before claiming the Australia Age Pension. So long as you meet the residency requirements you will be paid the pension. (If you are an Australian Citizen, or Permanent Resident, aged 65 and over and have lived in Australia for at least 10 years you will be paid the pension.) You are not required to have lived here for 10 years consecutively, just as long as you spent 10 years here in total from all the time you have been here, you will get the pension. New Zealand citizens are no longer entitled to an Australian pension under SCV Visa category. All NZ Citizens granted an SCV visa from 26 February 2001 will not be granted an Australian Pension though they will be able to claim their New Zealand Pension in Australia if they choose to retire here. The rate of the pension is the same for everyone, currently $562.10 per fortnight. The Superannuation system is not to be confused with the Australian Universal Pension System. Superannuation (introduced in the late 1980's) is a compulsory payment of around 12% of a workers weekly salary that must be paid by the employer into a Superannuation Fund, these funds can be placed into Managed Funds or simply held in low risk Government Bond or Cash Rate facilities. The funds can not be withdrawn until you reach 65. The idea is that people will be partially self-sufficient upon reaching retirement and reducing the burden on the Universal Pension System though I suspect that by the time the people who have Super start claiming their funds, there wont be much of a Universal Public system left in place. It is worth noting that most Superannuation funds were invested in Manged Stock Market and Property funds and most Australians have lost at least 50% of their Super savings.