Age pension

Age pension rates

Each year, the Commonwealth Government reviews the fortnightly pension rates. The current maximum fortnightly payment rates are as follows:

	Single person	Couple living together	Couple separated due to ill health
Maximum basic rate	$971.50	$732.30 each	$971.50 each
Maximum pension supplement	$78.40	$59.10 each	$78.40 each
Energy supplement	$14.10	$10.60 each	$14.10 each
Total per fortnight	$1,064.00	$802.00 each	$1,064.00 each

IMPORTANT: For most people, the Age Pension alone is not enough to fund their retirement goals. This is why a healthy superannuation balance is so critical.

Other concessions and entitlements

Even if you don't qualify for the Age Pension, there are other benefits you may be eligible for.

Seniors’ Card

Each Australian state and territory offers a Seniors Card scheme for residents over 60 years of age. Not only does the card provide discounts on public transport and for many Government services, but a host of businesses and retail outlets also offer valuable discounts to Seniors Card holders.
Best of all, it’s free and not subject to income or assets tests.

Rent assistance

Low-income earners and those on a Government pension who are renting, may be eligible for Centrelink’s rent assistance.

Seniors Health Card

The Commonwealth Government health card can assist with the cost of prescription medicines and other health services if you are of Pension age but do not qualify for a Government Pension. This card is subject to the income test.

Pensioner Concession Card

If you’re on a Government Pension, the concession card enables you to buy prescription medicines at a reduced cost, and also access healthcare concessions and other discounts offered by state and territory governments and local councils.

How much pension will I get?

Be sure to check the pension eligibility requirements, they have changed several times over the years. Consider combining the pension with your super to maximise your income in retirement. This combined approach can help make modest amounts of super last much longer than you might think.

How it works

The Age Pension is a Government allowance paid to eligible Australians who have reached retirement age. It is managed by Centrelink, a division of the Commonwealth Government’s Department of Human Services, and is commonly referred to as the old age pension.

The Age Pension is income and assets tested, which means the amount you are entitled to receive will depend on any other income you receive (from super, investments and paid work) and on the assets you own.

Do I qualify?

To receive the Age Pension, you must first satisfy the following eligibility requirements:

Residency

You must generally:

Be an Australian resident and be in Australia on the day you apply for an Age Pension
and
Have lived in Australia for over 10 years

There are some special exceptions for refugees, widows and former residents of countries that Australia has special social security agreements with.

Age

The qualifying age for the Pension is currently 66 and it will increase in stages to 67. This may continue to increase to around 70 years of age.

The current qualifying ages are:

If you were born between	you qualify for Age Pension at age
1 July 1952 to 31 December 1953	65 years and 6 months
1 January 1954 to 30 June 1955	66 years
1 July 1955 to 31 December 1956	66 years and 6 months
From 1 January 1957	67 years

Assets and income tests

All Government pensions are income and assets tested which means they test -

a) How much you earn from other income streams – the income test

and

b) How much your assets are worth – the assets test

The test that results in the lower pension rate will be the one applied.

Income test

Income includes money from:

Employment
Superannuation pensions and/or annuities
Investments

It also includes money from outside Australia.

For every $ of income you earn above $180 per fortnight ($320 for a couple), your Pension payment will be reduced by 50 cents.

Note: The Government has proposed a change that would allow Age Pensioners to earn an additional $4000 this financial year without losing any of their pension.

Assets test

Centrelink will make a valuation of your Australian and foreign assets to work out how much of the Age Pension you can receive. The information is here. As with the income test, if your assets exceed a certain threshold, the amount of Pension you’re eligible for will decrease – potentially to zero.

And if I qualify?

If you pass the residency and age criteria, then Centrelink will work out how much Age Pension you are eligible to receive, depending on your income and assets and other circumstances.