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The Age Pension is a government payment scheme which provides a steady income to eligible Australians to help them cover living costs when they're retired. If you're eligible, you can receive up to $944.30 a fortnight as an individual or $1,423.60 a fortnight for couples. However, not everyone is eligible to receive the Age Pension: it depends on how much you earn and the value of your assets and investments. We'll outline the income limits and age requirements in this guide.
If you're not eligible for the Age Pension, we've listed a few other ways to generate extra income in retirement at the end of this guide.
If you're eligible for the Age Pension, the amount you'll receive will depend on whether you're single or a couple, the amount of income you earn and the value of your assets (such as property, investments and cars). The Age Pension is made up of a basic pay rate that all eligible people receive, as well as a Pension Supplement and Energy Supplement.
The table below shows the maximum rates you can receive from the Age Pension if you meet the eligibility requirements.
Status | Maximum basic rate per fortnight | Maximum Pension Supplement | Energy Supplement | Maximum total payment |
---|---|---|---|---|
Single | $860.60 | $69.60 | $14.10 | $944.30 |
Couple | $648.70 each or $1,297.40 combined | $52.50 each or $105 combined | $10.60 each or $21.20 combined | $711.80 each or $1,423.60 combined |
Couple separated by illness | $860.60 | $69.60 | $14.10 | $944.30 |
These two supplementary payments are automatically included when you meet the eligibility requirements. The amount that you get from the supplements depends on different factors, including your relationship status. To learn more about these payments, visit the Pension Supplement and Energy Supplement pages on the Services Australia website.
Below are the eligibility requirements anyone seeking the Age Pension needs to satisfy.
Until 30 June 2021, you must be at least 66 years of age to be eligible for the Age Pension. The qualifying age will gradually increase by 6 months every 2 years, to 67 years by 1 July 2023. Therefore, the age you'll be eligible to apply for the Age Pension will depend on the date you were born, as shown in the table below.
If your birth date is | You'll 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 |
Generally, you must be an Australian resident for at least 10 years before you are eligible for the age pension. Out of this 10-year period, you must also have lived in Australia for at least 5 years in a row. Australia also includes Norfolk Island and Lord Howe Island. These residence requirements apply to both Australian citizens and other residents.
The following exceptions apply:
Here's how much you can earn before you're no longer eligible for the Age Pension at all. There are different income cut-off points that apply depending on whether you're single, married, disabled, if you own your home, etc. This income test applies to the following pensions:
If you earn enough income you won't be eligible to receive the Age Pension. Take a look at the table below to see what the cut-off point is for your family situation. If you earn below the amount set for your situation you may be eligible for part of the pension.
If you're | You won't receive any Age Pension once your income reaches |
---|---|
Single | $2,062.60 per fortnight |
Couple living together (combined income) | $3,115.20 per fortnight |
Couple living separately because of health reasons (combined income) | $4,085.20 per fortnight |
Figures correct as of April 2020
If your income is below the above limits, then the amount of pension you're eligible to receive will also depend on your income as outlined in the table below.
Singles
Earning (per fortnight) | Earning (per fortnight) | |
Single | $174 or less | More than $174 |
Reduction in Age Pension payments | You're eligible to receive the full Age Pension | Your Age Pension payments will be reduced by 40 cents for each dollar over $174 |
Couples
Earning (combined income per fortnight) | Earning (combined income per fortnight) | |
Couples (including couples living separately due to illness) | $308 or less | More than $308 |
Reduction in Age Pension payments | You're eligible to receive the full Age Pension | Your Age Pension payments will be reduced by 40 cents for each dollar over $308 |
There are limits to the amount of assets you can own (and the value of these assets) to be eligible for the Age Pension. Assets include cash, gifts, real estate, investments, businesses, farms, vehicles, boats, jewellery, life insurance policies and more.
If your assets are worth less than these limits (the limits are different for homeowners and non-homeowners), you'll be eligible for the full Age Pension (provided you meet the other eligibility criteria in this guide). You can still earn part of the Age Pension if your assets are worth more than these limits.
Family situation | Limit for homeowners to receive the full Age Pension | Limit for non-homeowners to receive the full Age Pension |
---|---|---|
Single | $263,250 | $473,750 |
Couple (combined) | $394,500 | $605,000 |
Couple separated by illness (combined) | $394,500 | $605,000 |
One partner eligible (combined assets) | $394,500 | $605,000 |
*Figures as of 14 April 2020
If you’re eligible for the Age Pension or part of the Age Pension, you can apply online by following these steps:
If you can't apply online, you can visit your nearest Centrelink office instead.
One of the ways to receive your Age Pension is directly to your bank account. From here you can access your pension to pay for groceries, bills and any other expenses you may have. If you don’t yet have a transaction account and would like one to receive your Age Pension, or if you want to open a separate account to receive your pension to keep you pension payments separate from your other income, you can compare transaction accounts below.
The Age Pension is designed to help support Australians who are unable to support themselves through retirement with their savings and super alone. It's a bit of a safety net supplied by the government for those who need it, but it certainly isn't available for all Australians. If you're not eligible to receive the Age Pension, here's a few alternative ways to grow your income and access finance in retirement:
If you're not eligible for the Age Pension, chances are it's because you earn too much already and don't need the extra support from the government. Consider putting your money in a high interest savings account or term deposit and earning interest on your funds while you're not using them. A savings account is a great low-risk investment option in retirement. Compare high interest savings accounts here.
Another option is putting a portion of your money to work in the share market. By investing in companies that pay large, fully franked dividends you could create a mini income stream from these dividend payments in place of the Age Pension. Learn more about share trading and compare online share trading accounts here.
If you're not eligible to receive the pension and find yourself in need of some extra money, there are some loans available that are tailored to pensioners. These can include small loans of under $1,200 through the No Interest Loans Scheme (NILS), low documentation loans and other options. These are explained in more depth in our pensioner loans guide.
You can keep working well into your retirement and aren't forced to leave the workforce on your 65th birthday. Getting a part-time job is a great way to create another income stream, plus it also comes with many social and physical benefits. If you want to know more about returning to work after retirement, check out our guide here.
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