Disability Support Pension Vs Age Pension

Upon turning Age Pension age, clients who have been in receipt of the Disability Support Pension (DSP) will be asked whether they would like to stay on DSP or transfer to the regular Age Pension.  So what is the difference?  Should you retain the DSP or move to Age Pension?  We’ve broken down the differences and similarities between them to give you a hand deciding what’s best for you.

Similarities

• The rate of payment for both is the same.
• The Income and Asset tests used to determine rate of payment are the same.
• Both pensions are considered taxable payments.
• Both DSP and Age Pension will allow the partner to receive both Carer Payment and Carer Allowance.

Differences

• DSP has ongoing medical review requirements.  Age Pension does not.
• DSP recipients may be eligible for a Pensioner Education Supplement and Education Entry Payment whereas this is not available via Age Pension.
• Both DSP and Age Pension recipients may receive a Mobility Allowance, however, if you complete 15 hours of work-related activities in a week, you will receive a higher allowance under DSP
• There is no limit on the number of hours you can volunteer or work when receiving an Age Pension, however, there are limits for DSP.
• Those receiving DSP may be eligible for a higher rate of Rent Assistance when sharing a house with someone who is not their partner.

In summary, unless you meet one of the specific circumstances mentioned above, it is generally more beneficial to revert to Age Pension.  Keep in mind everyone’s situation is different and the examples mentioned above are only broad brush, so it is best to seek advice before making any decisions.