Summary
Qualifying for the Government Age Pension
Alongside your super and any assets or investments you have, the Age Pension could be a way to help fund your lifestyle in retirement.
But there are eligibility rules, here’s what you need to know:
- you need to be of Age Pension age
- you need to be living in Australia and meet residence rules
- You'll need to qualify under the assets and income tests, which will determine payment amount.
Find out more at Services Australia.
The assets test
Consider these two facts:
- According to the latest Australian Census, there were nearly 9.8 million households in Australia. Of those, 6.2 million households or 67% were homeowners.1
- According to the ASX, 51% of Australians or 10.2 million people have investments in addition to their home and their super fund. 58% of investors hold Australian shares.2
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Your assets will be used to determine your Age Pension payments:
- If you own your home you live in, it may not be counted as an asset.
- If you don’t own your home, you may hold more assets before your payments are reduced.
Single
Couple1
HomeownerTo receive the maximum Age Pension, your assets must be below:
You won’t receive the Age Pension if your assets exceed:
$314,000
$695,500
$566,000
$947,500
$470,000
$1,045,500
$722,000
$1,297,500
Source: Services Australia, 20 September 2024
1 Different limits apply for couples separated due to illness
The value of these assets may be taken into account3
Real estate you own
Real estate you own
Apart from your principal residence (if it’s under 2 hectares).
Life interests
Life interests
The right to receive an income or use an asset for the rest of your life (unless it’s your principal residence).
Super accounts
Super accounts
Owned by you or your partner if/at over pension age.
Retirement income account
Retirement income account
Like a Choice Income account.
Other assets
Other assets
Including motor vehicles, boats, caravans, fishing or taxi licenses; the surrender value of life insurance policies; hobby collections; cryptocurrencies; household contents and personal items, such as computers and jewellery.
Gifts
Gifts
Assets or money given away to your family or friends that either exceed $10,000 in a single financial year, and/or a total of $30,000 over five financial years.
Granny flat deposit
Granny flat deposit
Money or assets you transfer to live in a granny flat for the rest of your life.
Retirement village deposit
Retirement village deposit
Money you pay to live in a retirement village.
Financial investments
Financial investments
Including cash, shares, term deposits and bonds.
Business assets
Business assets
If you’re in a business partnership or you’re a sole trader.
The income test
Then there’s the income test. You can earn up to a certain level of income before your Age Pension payments start decreasing. The income test includes all sources of income including employment income and investment income. Deeming rules are used to work out income from your financial assets.
Family situation
To receive the maximum Age Pension, your income must be below:
You won’t receive the Age Pension if your income exceeds:
Single
$212 a fortnight
$2,500.80 a fortnight
Couple1
$372 a fortnight
$3,822.40 combined a fortnight
Source: Services Australia, 20 September 2024
1Different limits apply for couples separated due to illness
Deeming rates
A simple rate is applied to ‘deem’ the amount of interest earned from financial assets. The calculation is used to determine how much to include as income under the income test. For details visit the Services Australia website
Work Bonus
The Work Bonus is a government incentive to keep older Australians in the workforce and is not counted under the income test. So, if you keep working part-time, you could supplement the Age Pension and use less of your super.
Read more
- The income test for the Age Pension
What to look for in an adviser
If you’re planning for retirement you may feel that managing your financial entitlements can be complex. Advice can play a critical role in asset arrangements to potentially help qualify for the Government Age Pension. AustralianSuper offers access to different advice options depending on your needs. Connect with one of our team members who can put you in touch with an accredited financial adviser.4
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Here are 5 things to consider when looking for a financial adviser.
1. Know when to ask for financial help and advice
There are many reasons to seek financial advice. You could consider speaking with someone when you:
- Experience a major life event. The most obvious one is retirement but this could also be buying or selling a home, changes to your health or the death of a loved one
- Face financial challenges like debt or unexpected expenses
- Inherit wealth or have a financial windfall
- Want to set specific financial goals or create a budget
- Need help with investment decisions or retirement planning
- Want to optimise your tax strategy.
It can also be helpful to regularly check in to review and adjust your financial strategy for peace of mind or as your circumstances change.
2. Understand a financial adviser’s qualifications, reputation and fees
A professional financial adviser should be up to date with the latest changes in financial products and legislation. To make sure you find a knowledgeable financial adviser, you should:
- Ask the financial adviser about their qualifications and experience.
- Find out the areas of advice they specialise in and what sort of advice they’re able to offer you. For example, only certain financial advisers can give advice about self-managed super funds (SMSFs) or share trading.
- Consider your own personal preferences, such as if you’d rather speak with an adviser of a specific gender or age.
- Ask how their service works. For instance, whether they offer once-off or ongoing advice.
- Request an outline of their fees and if they’ll provide a quote for the advice before completing any work. It’s also a good idea to ask how they’re paid.
Anyone who gives personal financial advice and most general advice providers must have an Australian financial services (AFS) licence, individual financial advisers may provide advice as an authorised rep of an AFS licensee. You can check a financial adviser’s qualifications, training, and experience on the Australian Government’s Moneysmart Financial Advisers Register.
3. Find the right financial adviser for your needs
Connecting with a financial adviser works like any relationship – trust is key. You want to be comfortable with the person you’re meeting with and be confident in the future they’re helping you plan for.
Asking friends or colleagues for a referral can be a good starting point. Some of our education sessions are hosted by a financial adviser. This can be a great way to see how someone presents themselves before you make an appointment.
4. Prepare before your first meeting
First, make sure you have an overall idea of what you want to get out of the meeting and what’s important to you. This will depend on your financial situation and what you want to achieve In retirement .
Next, think about some specific topics or issues you need a hand with. Maybe you want to invest your super in a certain way but aren’t sure where to start. Or you might want to make sure your super goes to the right person when you die. Perhaps you're considering retirement income options, managing debt or looking to downsize your family home. Whatever it is you want to learn more about, it can be helpful to prepare your questions before the meeting.
If you’re married or in a de facto relationship, it’s important to seek financial advice as a couple and plan together.
Your pre-appointment checklist
When you go to your first meeting with an adviser, make sure you take a few important personal financial details with you. This includes your:
Budget
Budget
An estimate of your monthly spend on mortgage or rent, bills, expenses and debt.
Income
Income
Including any wages you earn and money from investments, Centrelink payments or overseas pensions.
Assets
Assets
Including property, super, savings and investments.
Insurance
Insurance
Details of any life, disability or income protection insurance.
5. Work with your financial adviser to make sure you’re getting the right advice
Once you’ve found a financial adviser you trust and want to work with, it can take a few sessions to prepare your plan and put it into action.
Your first meeting with an adviser is a chance for you to both get to know each other. You’ll find out more about how they’ll work with you and provide advice. It’s also an opportunity for you to share your personal circumstances, financial concerns, and plans for retirement. In most cases, the adviser will use this meeting as an opportunity to understand your needs and provide a quote for any advice fees moving forward.
From that first meeting, your adviser will generally prepare your personal financial plan, present their recommendations to you and work through any questions or changes you have.
Once you’re happy with the plan, your adviser will work with you to put the advice into action. Remember, your financial plan isn’t ‘set and forget’. It’s a good idea to regularly review your plan with your adviser and let them know if your circumstances change.
Find a financial adviser
As an AustralianSuper member, you have access to a range of advice options.
You can can use AustralianSuper’s online superannuation calculators. You can also call 1300 300 273 and arrange to speak with
someone from the phone-based advice team. AustralianSuper members generally don’t need to pay extra for simple, over-the-phone advice because its covered by your administration fees5.If your situation is a little more complex, you’ll likely benefit from comprehensive advice. You can engage a financial adviser to develop a detailed and personalised financial plan to help you achieve your best possible financial future4.
Read more
- Access advice with AustralianSuper
Discover the potential benefits of financial advice for your future
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Important Information
- Australian Institute of Health and Welfare (2023) Home ownership and housing tenure, AIHW, Australian Government,
- Australians maintain fascination for investing - ASX June 2023
- Please consider your own circumstances and refer to Services Australia Asset Types
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.
- There’s no charge for general advice about your super account. The financial advice you receive will be provided by Link Advice Pty Limited ABN 36 105 811 836, AFSL 238145 and will be their responsibility. Personal product advice provided may attract a fee, which will be outlined before any work is completed and is subject to your agreement.