September 20 2024
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By the time you reach Age Pension age, you might have some money in the bank and hopefully a decent chunk in super savings to support you through retirement.
But you probably don’t want to be digging into your savings regularly. If eligible, the Age Pension could help you stretch your savings for longer after you stop working, while also giving you access to a range of concessions and benefits.
Can you get the Age Pension if you have super?
Yes, provided you have reached the Age Pension age, you may be eligible for the Age Pension even if you have super savings. The bigger question is how much super you can have and still be eligible for the pension – more on that later.
First, how does Centrelink decide whether you’re eligible for the pension and how much you’re eligible to get? Simply put, Centrelink requires you to provide key details to work out whether you’re eligible and how much to pay you every fortnight. They’ll want to know:
- how much income you get (the ‘income test’)
- what assets you own (the ‘assets test’)
- your residency status
- if you are a homeowner
- if you are a member of a couple
The results will help Centrelink determine whether you’re eligible for a full, part, or no pension at all.
How super is counted in Centrelink’s income and assets tests
When you reach Age Pension age, your super balance is counted in both the assets test and the income test (under the deeming rules). This also applies to your partner and their super when they reach Age Pension age.
If you haven’t reached the Age Pension age, Centrelink doesn’t count your superannuation in the income and assets test (or your partner’s while they are under the Age Pension age).
Other assets also considered financial assets by Centrelink include savings accounts, listed shares, and managed funds.
How account-based pensions are assessed by Centrelink
Some people may choose to withdraw their super using account-based pensions. One thing to keep in mind is that account-based income streams are counted by Centrelink as financial assets (except for some account-based pensions purchased before 1 January 2015 that are subject to grandfathered rules). This means if you start a new account-based pension, your account balance will be assessed under the assets test and deemed under the income test. This applies regardless of whether you (or your partner) are over or under the Age Pension age.
Deeming
Deeming is a method Centrelink uses to calculate how much income you make from your assets (like savings or investments) when you apply for Age Pension. Under deeming, instead of looking at how much your assets actually earn, it’s assumed they earn a set amount of income. This is done to make it simpler to work out if you're eligible for the Age Pension and how much you should receive.
As of 1 July 2024, the deeming rates and thresholds* are:
- If you're single – the first $62,600 of your financial assets (including your super) has the deemed rate of 0.25% applied. Anything over $62,600 is deemed to earn 2.25%.
- If you’re a member of a couple and at least one of you get a pension – The first $103,800 of your combined financial assets (which includes super) has the deemed rate of 0.25% applied. Anything over $103,800 is deemed to earn 2.25%.
Income test
The income test is used to help determine if you’re eligible for the Age Pension and affects how much your pension payments could be. The income test is an assessment of your income from all sources. According to Services Australia, assessable income includes but is not limited to reportable super contributions and from any funds invested in superannuation if you’ve reached Age Pension age, or any funds that is invested in a super pension fund or income stream, regardless of age. Different rules do apply to account based pensions that were purchased before 1 January 2015 and held a Commonwealth seniors health card on 31 December 2014, please contact Services Australia for further information.
For most pensioners, here are the fortnightly income limits as at 20 September 2024, though your cut off point may be higher if you get the Rent Assistance or Work Bonus, or lower if you do not live in Australia.
Single
|
$212 |
$2,500.80 |
| A couple living together (combined) |
$372 |
$3,822.40 |
| A couple living apart due to ill health |
$372 |
$4,949.60 |
For other situations and for the latest income rules, visit the Services Australia website.
The assets test
The asset types that Centrelink looks at includes things like investment properties, home contents, your car, and bank account. Your accumulated super is counted at full value in the Age Pension means test as you are over Age Pension age (your partner’s super may be counted, depending on their age) and so are any account-based pensions you (or your partner) have. If you own your own home, Centrelink generally doesn’t assess this under the assets test.
Learn more about what counts as an asset from Services Australia.
How much can you have in assets (including super) and still get the full pension?
Your super forms part of your overall assets. If your assets and income are greater than the Centrelink limits for your situation, they’ll reduce how much Age Pension you can get. If you’re part of a couple, the limit applies to both you and your partner’s assets combined. The below table shows Centrelink’s asset limits for the full pension*.
| Your situation |
Asset Limit |
| Homeowner |
Non-homeowner |
| Single |
$314,000 |
$566,000 |
| A couple, combined |
$470,000 |
$722,000 |
| A couple, separated due to illness, combined |
$470,000 |
$722,000 |
If you exceed the asset and income limit for the full Age Pension, you may be eligible for a part pension
From 1 July 2024, part pensions cease when your assets are over the cut-off point (also called the ‘asset limit’). As above, if you are a member of a couple, the limit is for both you and your partner’s assets combined. Here are Centrelink’s asset limits for the part pension*.
| Your situation |
Asset Limit |
| Homeowner |
Non-homeowner |
| Single |
$695,500 |
$947,500 |
| A couple, combined |
$1,045,500 |
$1,297,500 |
| A couple, separated due to illness, combined |
$1,233,000 |
$1,485,000 |
| A couple, one partner eligible, combined |
$1,045,500 |
$1,297,500 |
Can you withdraw your super and still get the Age Pension?
When you withdraw money from your super, you’ll need to notify Centrelink. How the withdrawn funds are assessed will depend on what you do with the funds (e.g. spend or put them in the bank etc).
You should also consider any Centrelink implications of your partner’s withdrawals. For example, if your partner is under the Age Pension age and aren’t retired yet, Centrelink will not count their superannuation as part of your combined assets. However, if your partner withdraws some of their superannuation, it will be counted as part of your assets, so a withdrawal may impact your Age Pension.
Each person’s situation is different, so it’s important to understand all the ins and out and get trusted financial advice before making any decisions about your super and the Age Pension. A good place to start to get more detailed information is from the Services Australia website.
*These thresholds are reviewed and updated regularly. For the most up-to-date limits and tables, visit Services Australia.
