DELAYING retirement can earn pensioners a lump sum of up to $33,000, but only if they plan ahead.

Eligibility for Centrelink's Pension Bonus Scheme – which rewards people who work past pension age – has been greatly relaxed from this month.

Along with the more generous assets test rules, age pensioners can plan ahead for tax-free lump-sum bonus payments of up to $54,000 for a couple, while keeping their assets.

The Pension Bonus Scheme has attracted plenty of criticism and complaints from elderly people who have registered for the scheme and kept working for up to five years only to find that for some technicality they were ineligible for the bonus.

Centrelink staff now have discretionary powers in relation to the 13-week application period.

Additionally, people who have registered for the scheme will now be allowed to take up to 26 weeks' leave from work without losing their bonus.

There will also be a top-up payment for part-pensioners who move to a higher pension rate later on.

Also, new provisions allow the bonus to be paid to the spouse of deceased scheme members. "Essentially it's been made easier to claim and not get disqualified along the way," said Andrew Heraud from financial advisers Heraud Harrison.

"This will assist a lot of elderly clients in this space.

"People who are uncertain about what they want to do should at least apply – you don't lose anything by applying."

The pension bonus scheme works to encourage older workers who defer claiming the age pension.

Under the scheme, they may be entitled to earn a one-off tax-free lump-sum bonus when they do finally claim the age pension.

Registration for the scheme must be completed within 13 weeks of the day you first qualify for the age pension. That is 65 for men. The qualifying age for age pension for women is gradually being increased to 65 by 2014.

Kathleen, 68, from the Sunshine Coast, registered more than five years ago for the scheme and kept working full time, thinking she would receive nearly $30,000 on her 68th birthday.

"I rang them a few days after my birthday to ask about the money, and it was then I was told I didn't qualify for the age pension and wouldn't be receiving the pension bonus," she said. Kathleen failed the income, assets and work tests for the age pension. Without good advice, she had lived and worked for five years with the misconception that the bonus would be paid after her 68th birthday almost regardless of her circumstances.

Following a disproportionate level of complaints, the Commonwealth Ombudsman undertook an inquiry into the bonus scheme. Now the rules are being relaxed and Centrelink staff have been given the power to be more flexible with their enforcement of the application periods.

Centrelink has provided a case study to show how the generous new assets test increases the bonus payable to many retirees.

By July 2007, 70-year-old "Jamie" had completed five years as a member of the Pension Bonus Scheme. He is a single homeowner and has assessable assets of $300,000.

If he retired in July 2007 and claimed the age pension, his starting rate would have been about $130 per fortnight and he could have received a pension bonus of about $7500.

Jamie decided to keep working. He delayed his retirement and claiming the age pension until after the assets test changed on September 20, 2007. His starting rate will now be about $343 per fortnight with a pension bonus of about $20,600.

However, if he delayed his claim for too long, he risks losing his pension bonus entitlement entirely.

Kathleen wanted her bonus and wanted to keep working as well. Mr Heraud said the timing of your retirement needed planning and it was not going to work for everyone.

"If you are not going to earn too much, you might be better off on a part pension while continuing to work, and of course it depends on assets."