You must:

  • be an Australian citizen
  • have been a resident in Australia for at least 10 years (with at least 5 of those continuously)
  • be 65 to 67 years of age (depending on when you were born) – although this may be raised to 70.



The full pension (including supplements) is:

Fortnightly Annual
Single $860.20 $22.365.20
Couple combined $1,296.80 $33,716.80

These amounts are indexed for cost of living increases twice each year.

Income and assets tests

  • Pensions are gradually scaled back if you earn an income in retirement or if you own substantial assets.
  • Pensions are calculated against both income and asset levels, then the lower of the two amounts is paid.
  • The family home is exempt from the assets test, but the asset test levels are different for homeowners (lower of course).
  • If you are still working in retirement, make sure you read ‘Work Bonus’ above.
  • Your investments are deemed to earn certain rates regardless of the actual income you earn from them. Please see the current deeming rates below.

The Income Test
We show annual figures to keep it simple.

Income above the threshold reduces your rate of pension by 50 cents in the dollar, so that at the disqualifying limit, you no longer receive any pension.

Threshold Disqualifying Limit
Single $4,160 $48,890
Couple combined $7,384 $74,817

The returns from financial investments (such as deposits, shares and managed funds) are deemed to be 1.75% for the first $48,000 invested then 3.75% for all amounts above that.

The Assets Test
Your pension is reduced by $1.50 a fortnight (or $39 per year) for every $1,000 your assets exceed the threshold, so that at the disqualifying limit, you no longer receive any pension.

  Threshold Disqualifying Limit
homeowners $202,000 $775,000
non-homeowners $286,500 $1,151,500
Couples combined     
homeowners $348,500 $922,000
non-homeowners $433,000 $1,298,000

To find out exactly what your situation is, use the Centrelink calculator.


Under the Work Bonus, the first $250 of fortnightly employment income (i.e. $6,500 per annum) is not assessed as income under the pension income test.


What are your thoughts?

Do you have enough Superannuation and other savings so that, with the Pension, you will be able to live comfortably? Have we left anything out? Is there anything else you’d like to know about the Age Pension?

Join the conversation — leave a comment below and let us know what you’re thoughts are.

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