How much Age Pension could you receive, and how do your super, savings, and home affect that amount? The Age Pension is an Australian Government payment for older Australians, paid by Services Australia, and for most people it works alongside super rather than instead of it.
Most retirees end up with a mix of Age Pension payments, super and savings, so the decisions you make about those assets shape what the Age Pension in Australia pays you. That’s why it belongs in any conversation about retirement planning in Australia, not as an afterthought once the super runs down.
Current Age Pension rates
These are the maximum Age Pension rates from Services Australia, per fortnight, effective 20 September 2026.
| Per fortnight | Single | Couple, each | Couple, combined |
| Basic rate | $1,135.40 | $855.90 | $1,711.80 |
| Pension Supplement | $88.20 | $66.50 | $133.00 |
| Energy Supplement | $14.10 | $10.60 | $21.20 |
| Total | $1,237.70 | $933.00 | $1,866.00 |
These are the rates for a full age pension. If the income and assets tests reduce your rate, you receive a part pension instead. Your relationship status also matters: singles and couples are paid at different rates, and couples are assessed on combined assets and income.
Services Australia confirms rates are adjusted every 20 March and 20 September. That puts the next age pension increase on 20 March 2027. Keep in mind that the Age Pension is a taxable payment, so factor tax into your pension payments when you plan your budget.
Wondering how much Age Pension you personally could get? The Services Australia website has a Payment and Service Finder, an online tool to see what payments and services you may be eligible for. Because your own decisions change the answer, a conversation with an adviser goes further.
Who is eligible for the Age Pension?
The Age Pension is the main Australian pension for older Australians. You are generally eligible for the Age Pension if you meet these rules:
- Age. The Age Pension age is 67 years or older, and Services Australia states there are no plans to change it.
- Residence. You are an Australian resident and have generally been one for at least 10 years in total, with at least 5 of those years without a break, under the residence rules for the Age Pension.
- Means. You meet the income and assets tests.
Retirement age and pension age are not the same, and Age Pension eligibility is tied to the pension age. You can stop work at any retirement age you choose, but the Age Pension is not paid until you reach 67.
It is important to remember that, while you may not meet the Age Pension eligibility requirements today, you may qualify later in life. As your super and savings are drawn down, you may become eligible for the Age Pension at a later stage.
If you are a veteran, you may be able to receive a similar payment through the Department of Veterans’ Affairs, alongside other government benefits.
How the income and assets tests work
The income and assets tests consider both what you earn and what you own. If your income or assets are above certain limits, your payment is reduced, and above the cut-off points, no pension is paid. Services Australia applies both tests when it works out your rate.
Income from all sources counts, including earnings from work, other pensions and annuities, and investment earnings. Assets include investment properties, cars, caravans, boats, shares, artworks and business assets.
While your family home isn’t included in the assets test, your pension may be affected if you sell it. Services Australia confirms that your principal home is not included in the assets test, as it is the only real estate asset left out.
Income test
These are the income test-free areas and cut-off points, effective from 20 September 2026.
| Per fortnight | Free area | Reduction above the free area | Income cut-off |
| Single | $226 | 50 cents for each dollar over | $2,701.40 |
| Couple living together | $396 combined | 25 cents each for each dollar over | $4,128.00 combined |
| Couple apart due to ill health | $396 combined | 25 cents each for each dollar over | $5,346.80 combined |
Below the free area, the income test doesn’t reduce your pension at all. How much income you have above it sets how far your payment falls.
Assets test
These are the assets test limits, effective 20 September 2026. For couples, the asset limits apply to combined assets, not to each partner.
| Situation | Full pension limit | Part pension cut-off |
| Single homeowner | $333,000 | $745,750 |
| Single non-homeowner | $600,000 | $1,012,750 |
| Couple homeowner, combined | $499,000 | $1,121,000 |
| Couple non-homeowner, combined | $766,000 | $1,388,000 |
Homeowner status changes which assets test limits apply to you, even though the home itself is not counted.
Deeming: how savings and investments are counted
Services Australia uses deeming rates and thresholds to calculate income from financial assets such as bank accounts, shares, and account-based pensions. They are deemed to earn a set rate whatever they actually return, and that deemed income is added to your other income for the income test.
- Single: the first $66,800 is deemed at 1.75%, and the balance above $66,800 at 3.75%.
- Couple, at least one receiving a pension: the first $110,600 of combined financial assets is deemed at 1.75%, and the balance above $110,600 at 3.75%.
Can you keep working? The Work Bonus explained
Yes. Many older Australians continue working for pay after reaching pension age, and the Work Bonus helps. Services Australia states you don’t need to apply for the Work Bonus: it is applied to eligible income once you declare your income.
The Work Bonus credit and maximum balance work like this: a $300 credit is added to your Work Bonus balance each fortnight, and unused credit builds up to a maximum of $11,800. The credit reduces the employment income counted under the income test, so you can earn some wages before your pension payments start to fall. Above that, the income-test-free areas apply as normal.
Thinking about returning to work after retirement? The Work Bonus lets you do that without your pension payments falling as quickly.
How your super and the Age Pension work together
Most retirees draw retirement income from both super and the Age Pension, so the Age Pension and super decisions you make are linked. How much you keep in super, how much you hold in the bank, and whose name assets are in can all affect your income and assets test results.
Account-based pensions and the income and assets tests
Financial assets are deemed under the income test at the rates above, under the deeming rules. For an account-based pension purchased on or after 1 January 2015, Services Australia treats the account as a financial asset and applies deeming under the income test. The account balance is the value counted in the assets test, as set out in how account-based income streams are assessed.
Income streams started before 1 January 2015 can be assessed differently if you’ve been on a pension or allowance without a break since 31 December 2014. That is one reason to check your own position before you change or roll over an older account-based pension.
Your superannuation pension and your Age Pension are best planned together. For more on the trade-offs, see how retirement income options compare, or talk to us about superannuation advice.
Couples and different ages
For couples, the income and asset tests use combined income and assets, and your relationship status determines which limits apply. If you and your partner are of different ages or plan to retire at different times, check how each partner’s super is assessed before making timing decisions.
Lump sum, downsizing and home sale decisions
Big one-off decisions can move you above or below an income test or assets test threshold, so the order and timing matter.
Taking a lump sum from super
A lump-sum withdrawal changes what you hold and where you hold it, so it can affect your income and assets test results. If you plan to give part of a lump sum to family, the gifting rules below also apply.
Selling your home
Your pension may be affected if you sell your home. For home sales from 1 January 2023, home sale proceeds deemed at the lower rate apply to the money you intend to use for a new principal home. That lower rate is currently 1.75%.
Downsizer contributions
If you are 55 or older and you or your spouse have owned your home for 10 years or more, you may be able to put up to $300,000 per eligible person from the sale into super within 90 days of receiving the proceeds. Under the ATO’s rules for downsizer super contributions, the contribution counts towards your total super balance and transfer balance cap, and selling your home and making a downsizer contribution may affect income support payments such as the age pension.
Gifting money to family
Many retirees want to help children or grandchildren. The gifting free areas are $10,000 in one financial year or $30,000 over 5 financial years, with no more than $10,000 in any single year; the limits are the same for singles and couples. Anything above that is counted in your assets test, deemed, and included in your income test for 5 years from the date of the gift. Check before you gift, not after.
Not eligible? The Commonwealth Seniors Health Card
If you have reached Age Pension age but don’t meet all the rules, you may be eligible for a Commonwealth Seniors Health Card.
Services Australia describes the Commonwealth Seniors Health Card as a concession card for cheaper health care and some discounts. Our guide to concession cards for seniors covers these and other government benefits in more detail.
Missing out now doesn’t mean missing out for good. Eligibility can change as your assets are drawn down.
When personal advice is worth it
General rules cover the typical case. These situations usually need someone to look at the whole picture:
- You are self-employed or hold business assets
- You have a self-managed super fund (SMSF)
- You and your partner are different ages or retiring at different times
- You are planning to sell, downsize or renovate your home
- You are considering a large lump sum withdrawal, or receiving an inheritance
- You want to gift money to family
At Steel Lake, we provide advice in your best interests; we don’t recommend our own products, and our costs are transparent, so you know the exact fee before proceeding. Find out more about our retirement planning advice.
Talk to us about your Age Pension and retirement plan
Whether you’re eligible for the Age Pension now or expect to be later, working out how your super, savings and home decisions affect it is easier with someone who can see your whole position. When you’re ready, book an initial consultation with Steel Lake, and we’ll talk through where you stand.
