If you are on the Disability Support Pension (DSP) and approaching your 67th birthday, you face a critical financial decision: Do you stay, or do you switch?
⚡ Quick Answer: Does Disability Pension stop at 67?
No, it does not automatically stop. However, Centrelink will invite you to transfer to the Age Pension 13 weeks before your birthday.
Why switch? The Age Pension has NO medical reviews and allows you to earn more from work.
Why stay? Stick with DSP if you receive Mobility Allowance or are a single renter sharing accommodation.
DSP vs. Age Pension: The Showdown
| Feature | Age Pension | Disability Pension (DSP) |
|---|---|---|
| Medical Reviews | ✅ None | ❌ Yes (Ongoing) |
| Work Bonus | ✅ $300 / fortnight | ❌ None |
| Travel Overseas | ✅ 6 Weeks (then reduced) | ❌ 28 Days (Strict) |
| Rent Assistance | Standard Rates | ✅ Higher (if sharing) |
| Mobility Allowance | ❌ No | ✅ Yes ($168.20/fn) |
The "Superannuation Trap" (Warning) ⚠️
Many people switch to the Age Pension and see their payment drop. They blame the Age Pension, but this is a myth.
The real reason is your age. Once you turn 67, your Superannuation (in accumulation phase) becomes assessable for the assets/income test, regardless of whether you are on DSP or Age Pension. Staying on DSP does not avoid this.
Decision Guide: Should You Switch?
✅ You SHOULD Switch to Age Pension If...
- You hate medical reviews: The Age Pension is based on age/finances only. No more doctors.
- You want to work: You get the Work Bonus, allowing you to earn $300 per fortnight from a job without reducing your pension. DSP recipients do not get this.
- You love to travel: You can go overseas for 6 weeks at a time (vs 28 days on DSP) without your payment stopping or reducing.
- You own a large property: The Age Pension has an "extended land use test" which can exempt land larger than 2 hectares (under specific conditions).
❌ You Should STAY on DSP If...
- You receive Mobility Allowance: This payment ($168.20/fn) helps with transport costs for work/training. You generally lose this if you switch to Age Pension.
- You are single & share accommodation: On DSP, you can receive the higher "Single" rate of Rent Assistance. On Age Pension, you are pushed to the lower "Sharer" rate.
- You are studying: DSP recipients retain access to the Pensioner Education Supplement ($62.40/fn).
How the Transfer Works
13 weeks before you turn 67, Services Australia will send you a letter. You must reply. If you ignore it, your DSP may be suspended.
You simply need to confirm you want to transfer and declare any superannuation. It is not a full new application.
Get the Decision Checklist
Still unsure? I've created a simple PDF checklist to help you tick off your pros and cons.
Download Free Checklist