Age Pension Australia — Eligibility, Rates and How to Claim
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
The Age Pension is a fortnightly payment from the Australian Government for older Australians who meet the age, residency, income, and assets tests. It is administered by Services Australia (Centrelink).
For many retirees, the Age Pension provides a partial income alongside superannuation savings. Understanding how it works — and how the means tests are calculated — is essential for retirement planning.
Key Takeaways
- The Age Pension eligibility age is 67 (for people born on or after 1 January 1957)
- Payment rates are indexed in March and September each year
- Subject to both an income test and an assets test — whichever produces the lower payment applies
- Your primary home is exempt from the assets test
- You can apply up to 13 weeks before reaching pension age
Age Pension Eligibility Age
| Date of birth | Qualifying age |
|---|---|
| Before 1 July 1952 | 65 (already eligible) |
| 1 July 1952 – 31 Dec 1953 | 65.5 |
| 1 Jan 1954 – 30 June 1955 | 66 |
| 1 July 1955 – 31 Dec 1956 | 66.5 |
| On or after 1 January 1957 | 67 |
Most Australians currently approaching retirement need to be 67 or older to claim.
Residency Requirements
To be eligible, you must:
- Be an Australian resident and physically present in Australia at the time of claim
- Have been an Australian resident for at least 10 years in total, including at least 5 years continuously
- Some exemptions apply for certain visa holders and people from countries with which Australia has social security agreements
Age Pension Rates (FY2025–26)
Rates are indexed twice yearly. As of the most recent indexation:
| Status | Fortnightly rate | Annual rate (approx.) |
|---|---|---|
| Single | ~$1,149 | ~$29,874 |
| Couple (combined) | ~$1,732 | ~$45,032 |
| Couple (separated due to illness) | ~$1,149 each | ~$29,874 each |
These figures include the pension supplement and the energy supplement. Always verify current rates at Services Australia.
Income Test
The income test reduces the Age Pension by $0.50 for every dollar of income above the free area.
Income free areas (approximate — FY2025–26):
| Status | Fortnightly income free area | Cut-off (approx.) |
|---|---|---|
| Single | ~$204 | ~$2,502 |
| Couple (combined) | ~$360 | ~$3,820 |
Income includes: wages, investment income, deemed income from financial assets, income from a business, and most other regular payments. It does not include the family home.
Deeming: financial assets (bank accounts, shares, managed funds, superannuation in pension phase) are deemed to earn a standard rate of return, regardless of actual returns. Deeming rates are set by Services Australia and change periodically.
Assets Test
The assets test reduces the pension by $3 per fortnight for every $1,000 of assets above the lower threshold.
Assets thresholds (approximate — FY2025–26):
| Status | Full pension below | Part pension below |
|---|---|---|
| Single (homeowner) | ~$314,000 | ~$695,500 |
| Single (non-homeowner) | ~$566,000 | ~$947,500 |
| Couple (homeowner, combined) | ~$470,000 | ~$1,045,500 |
| Couple (non-homeowner, combined) | ~$722,000 | ~$1,297,500 |
Exempt assets (not counted):
- Your primary home (principal residence)
- Funeral bonds up to the threshold (~$15,000)
- Certain prepaid funeral expenses
Counted assets include: investment properties, investment accounts, shares, managed funds, superannuation in accumulation phase (if over pension age), vehicles, boats, caravans, farm assets.
Work Bonus
If you are of Age Pension age and still working, the Work Bonus allows you to earn up to $300 per fortnight (in FY2025–26) in employment income without it counting towards your income test.
Unused Work Bonus amounts accumulate in a “bank” — you can bank up to $11,800 of unused Work Bonus to offset larger amounts of income in future fortnights.
How to Apply
- Log into myGov (my.gov.au) and link Centrelink
- Submit an online claim for Age Pension — you can start the claim process up to 13 weeks before you reach Age Pension age
- Services Australia will advise if they need supporting documents (proof of ID, bank account details, income and assets information)
- The assessment typically takes several weeks — your payment backdates to your claim lodgement date if approved
Alternatively, call Services Australia on 132 300 or visit a Centrelink service centre.
FAQ
Does my superannuation count toward the assets test? If your super is still in accumulation phase (not yet a pension), it counts as an asset when you are over Age Pension age. If your super is in pension/drawdown phase, the balance is counted as a financial asset and deemed to earn income.
Does my home count toward the assets test? No — your principal home (the property you live in) is exempt from the assets test. However, it does affect whether you are treated as a “homeowner” or “non-homeowner”, which changes your assets thresholds.
Can I get the Age Pension if I have overseas income or assets? Overseas income and assets are generally counted in the means tests. Australia also has international social security agreements with some countries — these can affect your eligibility.
What is the Pension Supplement? The Pension Supplement is a regular extra payment for Age Pension recipients that helps with daily costs including energy bills, phone, and internet. It is included in the rates shown above.
See also: Age Pension Income Test | Age Pension Assets Test | Commonwealth Seniors Health Card
For advice tailored to your retirement situation, speak with a licensed financial adviser. Find one via ASIC’s financial advisers register or MoneySmart.