Summary
What is the Government Age Pension?
2.6 million Australians receive the Government Age Pension1. But how much do you know about it? As you get retirement ready, it’s good to know what the Government Age Pension is, if you qualify for it, and how it could be part of the way you fund your retirement.
The Government Age Pension is a regular fortnightly income, paid by the Government via Services Australia, designed to help eligible older Australians pay for basic living expenses. If you’re eligible, it can help supplement payments from your super and provide an additional income once you’ve stopped working.
To be eligible, you need to meet all of the following:
Reaching preservation age and finishing up at work doesn’t mean you automatically get the Government Age Pension (though it does mean you can access super).
The Government Age Pension – are you eligible?
Many Australians in retirement receive either a part or full Government Age Pension. And the good news is you may not have to use all of your super before you can access it. Learn how the Government Age Pension works, the eligibility criteria, and what income and assets impact it.
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If you’re looking to receive Age Pension payments, you’ll need to meet age and residence rules. If you meet these conditions, you’ll then need to pass the Assets test and the Income test. These are used to determine your eligibility and the Age Pension payment amount you may receive.
- Age requirements – to qualify for the Age Pension, you must be 67 years or older.
- Residential status – you must be an Australian resident and in Australia on the day you apply for the Government Age Pension. You also need to have been an Australian resident for a total of 10 years, with at least 5 years in one period. There may be other circumstances in which you can meet the residence rules for more information, visit dss.gov.au.
Assets Test
How your assets affect your eligibility and pension payments.
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 (such as renting), you may hold a greater value of assets before your payments are reduced.
Your residential and relationship situation is used to determine the asset test threshold. See below table to see the difference between homeowners, non-homeowners, singles and couples.
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
1Different limits apply for couples separated due to illnessThe value of these assets may be taken into account:
- real estate you own (apart from your principal residence if it’s under 2 hectares)
- life interests (the right to receive an income or use an asset for the rest of your life)
- super accounts owned by your or your partner if/at over pension age
- retirement income account (like a Choice income account)
- 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 (assets or money given away above certain limits)
- granny flat deposit (money or assets you transfer to live in a granny flat)
- retirement village deposit
- financial investments including cash, shares, term deposits and bonds
- business assets
- assets held outside Australia
- debts owed to you
Please consider your own circumstances and refer to the Centrelink website.
How your income affects your eligibility and pension payments
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
Two income sources, one retirement: How the government Age Pension and account based pension can work together.
A large percentage of the retired population also qualifies for some level of Government Age Pension payment. In fact, 2.6 million people over the age of 65 receive Age Pension payments1.
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Depending on your eligibility, your super balance plus the Government Age Pension can work together to support you in retirement and help you manage your retirement budget.
The balance between super and the Age Pension is different for everyone, but understanding both could help you feel more confident about your retirement.
Here’s a breakdown of the differences between super and the Age Pension:
Retirement income – Government Age Pension vs super
Super Government Age Pension Can access once you reach preservation age and meet a condition of release. Can apply at Age Pension age, if eligible. Money is from your savings over your working life, held in your super fund. Money is from the government. You choose how much you access and when3. Your payment amount is set by the government and based on a range of eligibility tests, including residence status, income and assets. Over your retirement you can keep money invested in your fund so it could continue to gain investment returns. The investment returns will depend on the investment option you’ve selected and aren’t guaranteed.
You can transfer a specific amount to your bank account regularly and also a lump-sum amount as needed, while the balance of your super stays invested.
Money is paid into your bank account. Designed as retirement income source. Designed as retirement income support – a safety net for those with no super, or to support super savings.
Helping your super last
Over the past decade, life expectancy has increased2. That means people may spend longer in retirement than ever before and retirement savings need to last longer. If you are eligible for the Government Age Pension it can provide you with an important retirement safety net, but it may not be enough to maintain a comfortable living standard in retirement.
This is why some people find keeping their super invested in retirement can help their savings last after their working days are over. One way to do this is with an account-based pension, which provides regular income, keeping your retirement savings invested, with tax-free earnings to help manage your lifestyle needs.
AustralianSuper’s account-based pension is called Choice Income. It allows you to receive a retirement income from super at intervals that suit you, while keeping the balance invested. If you need to draw extra for larger expenses like holidays or bills, you can do that any time3.
For many Australians, moving all your super into a bank account can be concerning as you're responsible for a large sum of money to manage. An account-based pension is a popular choice for many retirees. It can help you to manage your super balance in retirement – which for many can be more than 25 years. It could also help you save on tax. That’s because once you turn 60, you generally no longer pay tax on income payments. Investment returns or earnings are tax free (irrespective of age) in an account-based pension.
Calculate your retirement income
Calculate your retirement income
AustralianSuper’s Super Projection Calculator can help you estimate how long your super could last. It may also give you an idea of how the Age Pension can help supplement your income. It’s based on some assumptions and data entered, such as your income and assets, if you have a partner and your current super balance. These tools can help you to visualise your retirement.
Improving your retirement confidence
Recent research into retirement confidence by AustralianSuper and Monash University4 found people aged 50 and over – who take time to understand and plan their finances – are less anxious about transitioning into retirement. It found they were more confident overall about their retirement options.
Knowing how much of the Age Pension you could be eligible for can help you begin to understand your finances in retirement. For many, a qualified financial adviser with knowledge of superannuation and retirement planning can help you get the right balance, and help you understand your assets, where needed.
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Important Information
- Australian Institute of Health and Welfare (2023) Income support for older Australians, AIHW, Australian Government, accessed 13 May 2024.
- Australian Bureau of Statistics (2020-2022), Life expectancy, ABS Website, accessed 13 May 2024.
- The government has set a minimum amount that must be taken as an income each year from account based pensions such as Choice Income. This amount varies with your age. There is a lifetime limit on the amount of super you can transfer into any tax-free retirement income accounts. To learn more view the Choice Income Product Disclosure Statement.
- AustralianSuper and Monash University, Retirement Confidence Index, 2022.
- 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.