Rules for seniors to know when travelling overseas, and how it can affect their retirement funds

SENIORS love to travel, and also love the age pension they receive in retirement. But sometimes mixing the two can get tricky. Here’s how the rules affect you.

How holidays can affect the age pension

SENIOR Australians love to travel, and also love the age pension they receive in retirement.

Sometimes mixing the two can get tricky, so it’s worth understanding how the rules affect you.

Grey nomads travelling within Australia generally won’t have their age pension affected, says Department of Human Services general manager Hank Jongen.

However, you need to let Centrelink know of any changes to your circumstances, such as renting out your home if travelling for a long period or any casual income you may earn on the road.

You can sign up for a myGov account and elect to receive letters online while you are travelling, Jongen says.

While travel at home is pretty simple, overseas holidays — especially longer ones — can affect your age pension.

“You can generally continue to be paid age pension for the whole time you are overseas. However, the amount you receive may change at certain points,” Jongen says.

“After six weeks outside Australia, your pension supplement will reduce to the basic amount. In addition, your pensioner concession card will no longer be valid but will be automatically reactivated when you return to Australia.”

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Department of Human Services general manager Hank Jongen

If you are spending more than 26 weeks overseas, your age pension may be reduced, but if you’ve lived in Australia for more than 35 years of your working life, the rate on payment should stay the same.

“Australia has social security arrangements with 29 countries which can assist you to claim an Australian age pension while you are outside Australia, or to claim a pension from the other country, and may also affect your rate of pension while you are in an agreement country,” Jongen says.

The Department of Human Services website, humanservices.gov.au, has more information about pensioners travelling outside Australia and a checklist of what to think about.

“Information on the department’s website about when customers need to notify they’re leaving Australia has recently been revised,” Jongen says.

“In most cases customers do not need to notify the department, as we are automatically advised by the Department of Immigration and Border Protection.”

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