Age Pension
A government income support payment for older Australians, subject to age, residency, income and assets tests.
The Age Pension provides a base level of retirement income. Eligibility requires reaching Age Pension age — 67 for anyone born after 1956 — and meeting residency requirements.
Payment is then reduced by two separate tests. The income test and the assets test are both applied, and whichever produces the lower payment is the one used.
Most Australians receive at least a part pension at some point in retirement. Even a small entitlement matters because it brings the Pensioner Concession Card, which carries substantial ongoing value.
Payments are indexed twice a year, in March and September, against the higher of price and wage measures. That indexation is a genuine advantage over most private income streams, which do not automatically keep pace with the cost of living.
Why a part pension is worth having
A modest fortnightly payment plus the concession card can be worth thousands a year through discounted medicines, utilities, rates, registration and public transport.
The bit people get wrong
Your home is exempt from the assets test but money in super is not, once you reach pension age. Withdrawing super to renovate or pay down the mortgage can therefore increase your entitlement.
Common questions
What age can I claim the Age Pension?
67 for anyone born on or after 1 January 1957. Earlier birth cohorts had lower ages under transitional arrangements now largely complete.
Does my super count?
Once you reach Age Pension age, super counts under both the assets and income tests whether or not you have started drawing on it.
Can I work and still receive it?
Yes. The Work Bonus allows a certain amount of employment income to be disregarded under the income test, encouraging pensioners to keep working part-time.