You and the Age Pension

Since being introduced into the Australian retirement income system in 1909, the Age Pension has been a vital resource helping to raise the standard of living for retired Australians. More than just a safety net, the additional income provided by the Age Pension helps guard you against the possibility of outliving your savings. 

Because of this, it’s crucial for you to keep up to date on eligibility requirements, assets and income tests, and other changes as they arise.

Below is an overview of the basics of the Age Pension.

You may be eligible depending on your personal and financial situation. Your eligibility will depend on your age, what assets you own, and what income you might receive from your superannuation or other investments that you hold, such as shares, an investment property, etc.

To be eligible for the Age Pension, you must:

• Be at least 66 years of age, depending on when you were born (this will change to 67 in 2023)
• Be an Australian citizen or permanent resident, who has lived in Australia for at least 10 years
• Meet the assets and income tests.
  

Generally, the more wealth and assets you have, the less pension you will receive.

Other factors that may affect how much you may receive includes any income you receive from investments, how much property you own, and whether you’re part of a couple or single.

Currently, the maximum Age Pension (excluding supplements) is:

• $900.80 per fortnight for singles
• $1,358.00 per fortnight for couples.
  

To qualify to receive the Age Pension, you must complete the assets and income tests.

These tests help Services Australia determine how much Age Pension you are eligible for, based on your current income and assets.

Services Australia will assess the value of any assets you (and your partner) own. This is done to help determine what percentage of the Age Pension you will be entitled to. 

There are limits to how much you (and your partner) can have in assets, to qualify for either a full or part Age Pension. Higher limits apply if you don’t own your own home. 

Here are some examples of what’s included in the Age Pension assets test:

• Superannuation balances if you and your partner are both retired, and the value of any investments that give you a regular income, known as an income stream.
• Any other investments of value that you have, for example bank accounts, investment accounts, shares, etc.
• The market value of the contents of your home, including furniture, whitegoods, electrical equipment, etc.
• Any property you own apart from your primary residence, including property owned overseas.
• Any other assets such as cars, boats, caravans, collectibles, jewellery, etc.
  
  

According to Services Australia, the current asset limits are as follows:

Table 1: Assets limits for a full Age Pension