Age Pension Eligibility Estimator
Estimate your eligibility for the Australian Age Pension based on your income, assets, and living situation.
Quick Use Samples
Your Situation
Pension Estimate
You may be eligible for a
$948.70
per fortnight.
($24,666.20 per year)
You may be eligible for a part pension of $948.70 per fortnight. Your eligibility is determined by two separate tests, and your final pension is the lower of the two results. In your case, the Income Test is what limits your payment. This means your fortnightly income is what is reducing your potential pension payment. This is an estimate based on current rates and thresholds and does not constitute financial advice.
Eligibility Breakdown
Pension allowed: $948.70
Pension allowed: $1,096.70
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What is the Age Pension?
The Age Pension is a regular payment from the Australian Government (via Centrelink) that provides a financial safety net for people who have reached retirement age. It's designed to support the basic living costs of those who don't have enough superannuation or other income and assets to support themselves.
Behind the Formula
Eligibility is determined by two main tests: an Income Test and an Assets Test. Centrelink calculates the pension you would receive under each test, and you are paid the lower amount. The calculator applies the current thresholds and reduction rates for both tests to your financial situation to estimate your potential pension payment. Your family home is exempt from the Assets Test.
Expert Insights
- The family home is the most significant exempt asset. This is a cornerstone of the Australian retirement system and is why for many retirees, their home is their castle and their main store of wealth.
- Gifting rules are strict. You can only 'gift' (give away) up to $10,000 in one financial year, and no more than $30,000 over a 5-year period, without it being counted as an asset under the 'deeming' rules. This is to prevent people from giving away assets to qualify for the pension.
- Superannuation is treated differently depending on your age. If you are under the Age Pension age, your super is not counted as an asset. The moment you reach Age Pension age, your super balance is assessed as part of your financial assets, which can significantly impact your eligibility.
Actionable Tips
- Ensure your asset valuations are up-to-date. Centrelink requires you to provide the 'market value' of your assets, not the purchase price. For items like cars and caravans, this can be lower than you think.
- Consider funeral bonds or pre-paid funeral expenses. You can hold a certain amount in these products (up to a limit) and they are exempt from the Assets Test, which can help you qualify for a higher pension.
- If you are a couple, be aware that your income and assets are assessed jointly, regardless of whose name the asset or income is in. You are treated as a single financial unit for pension purposes.
Real-World Examples
A single homeowner with a modest super balance
A single homeowner has $250,000 in super and receives a small income from a part-time job. They pass the Assets Test because their assets are below the threshold, and their income is low enough to qualify them for a full or near-full Age Pension.
A couple who are renting in retirement
A couple who do not own their own home have a higher asset threshold. They can have up to the non-homeowner limit in super and other assets and still qualify for a part pension, recognizing that they have ongoing rental costs.
The impact of the Assets Test
A couple owns their home and has a combined $600,000 in superannuation. Because their assets are over the homeowner threshold, their pension is reduced under the Assets Test. The calculator shows them they will receive a part pension, not the full amount.
Glossary of Terms
Income Test
A test used by Centrelink to assess your income from all sources (e.g., investments, part-time work) to determine your pension eligibility. You can earn up to a certain threshold before your pension is reduced.
Assets Test
A test that assesses the value of your assets (excluding your family home). If your assets are above a certain threshold, your pension is reduced or you may be ineligible.
Deeming
A process where Centrelink assumes that your financial assets are earning a certain rate of income, regardless of the actual income they are earning. This is used to calculate your income for the Income Test.
Preservation Age
The age at which you can access your superannuation. This is different from the Age Pension age, which is the age you can apply for the government pension.