Do You Need to Apply for the Age Pension Right at 67? Myths vs Facts
For many Australians approaching retirement, turning 67 is seen as a major milestone. It’s the current qualifying age for the Age Pension, and the moment many assume they must apply. But is that actually true?
Not necessarily.
There are a lot of myths around when you “should” or “must” apply for the Age Pension. In reality, the right timing depends on your personal situation — your income, assets, superannuation, health, and financial goals.
This article separates myths from facts, so you can make an informed decision about when (or whether) to apply.
Myth 1: “You must apply for the Age Pension the moment you turn 67.”
Fact: You can apply any time once you meet the eligibility criteria.
Turning 67 simply means you’ve reached the qualifying age. It does not mean you are required to lodge a claim immediately.
Many people apply later because:
their assets are still too high
they’re working and earning more than the income threshold
they’re waiting for superannuation to reduce
they’re selling a property or restructuring finances
they’re not ready or don’t need the Age Pension yet
The Age Pension isn’t compulsory. It’s a benefit you can access when and if you meet the requirements.
Myth 2: “If I don’t apply at 67, I lose money.”
Fact: You don’t lose eligibility, but you can’t backdate payments.
Centrelink does not backpay the Age Pension to your 67th birthday.
They only pay from:
the date you lodge your claim, or
the date you contact Centrelink to start an “intent to claim”
This means:
If you apply at 68, you will not receive a lump sum for the missed year.
However, some people still choose to wait — because early application could result in:
a rejection (if assets/income are too high)
or receiving only a small part-pension that later becomes higher
In some cases, delaying for strategic reasons can benefit you long-term.
Myth 3: “You have to stop working before you can apply.”
Fact: You can apply even if you’re still working.
Many Australians continue part-time work after 67. Centrelink allows this, as long as your income is below the threshold.
Working with the Age Pension is more flexible than people think because of:
the Work Bonus, which boosts how much you can earn
the ability to report income fortnightly
the option to work casually or seasonally
So, turning 67 and continuing work doesn’t block you from applying.
Myth 4: “It’s easier if I apply early.”
Fact: It’s only easier if your documents and finances are already organised.
Applying early doesn’t reduce the paperwork.
Centrelink still requires:
ID and residency evidence
full asset details
income documents
superannuation information
property valuations
bank statements
partner details (if applicable)
Some people find that applying too early — before their finances settle — actually creates more complications.
If your situation is about to change (downsizing, selling investments, retiring from work), waiting until after those events may result in:
a cleaner application
a higher entitlement
fewer delays and adjustments
Myth 5: “If I apply later, Centrelink will penalise me.”
Fact: There are no penalties for applying later, but you might miss out on potential payments.
Centrelink will not punish or restrict you for applying at 68, 69, or even 75.
The only downside is that you simply won’t receive the pension until you lodge a claim.
For some people, delaying can actually be beneficial — especially if:
your super is still in accumulation phase
you have high assets that will reduce
you’re selling property or receiving an inheritance
you’re transitioning to part-time work
you’re waiting for investment values to fall within the limits
In these cases, applying “too early” could result in a rejection that could have been approved 6–12 months later.
So… should you apply at 67? It depends.
Here’s a simple way to think about it:
Apply at 67 if:
your assets and income are already within the thresholds
you’re retiring or working minimal hours
you want to start receiving entitlements such as Pension Concession Card
your financial situation is stable
Consider waiting if:
your super or investments are still high
you’re still earning above the income test
you’re about to sell a property or receive money
you’re tidying up finances (debt, downsizing, gifting etc.)
you’re likely to be rejected now but approved later
Getting the timing right matters. Here’s how we help.
At Age Pension Services, we help retirees understand the best timing for their application based on:
income and assets
superannuation phase
work status
upcoming financial changes
Centrelink’s current processing rules
A well-timed application can mean:
✔ faster approval
✔ fewer Centrelink delays
✔ higher entitlements
✔ a smoother overall process
Need help deciding when to apply?
If you’re turning 67 soon — or already have — and you’re not sure when to lodge your claim, we can help you choose the most financially beneficial timing.
📞 Book a consultation and process your application from $495!