Centrelink
Learn how the Australian Age Pension works, who may qualify, how the income and assets tests operate and how the Age Pension fits into retirement planning.
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For many Australians, the Age Pension forms an important part of retirement income.
Some retirees rely on it as their primary source of income, while others receive a part pension that supplements their superannuation and investments.
Others may never qualify at all.
One of the biggest misconceptions about the Age Pension is that you either receive it or you don't.
In reality, eligibility often changes throughout retirement as your assets, investments and income change.
Understanding how the system works can help you make more informed retirement decisions.
In this guide we'll explain:
The Age Pension is an income support payment provided by the Australian Government through Services Australia.
Its purpose is to assist eligible older Australians by providing ongoing financial support during retirement.
Depending on your circumstances you may receive:
Your entitlement depends on several factors, including your age, residency and financial circumstances.
Current payment rates and assessment thresholds are published by Services Australia and change from time to time.
Eligibility generally depends on:
Meeting the age requirement alone does not guarantee eligibility.
Your financial circumstances are also assessed.
The assets test considers the value of assets you own.
These may include:
The value of these assets influences whether you receive:
Importantly, not every asset is assessed in the same way.
For current assets test thresholds and how different assets are treated, refer to Services Australia.
For most Australians, the family home is not counted under the Age Pension assets test.
However, other property owned outside your principal place of residence may be assessed.
Although the family home is generally exempt from the assets test, it can still influence broader retirement planning decisions.
The income test looks at the income you receive or are deemed to receive.
Income may include:
Certain financial investments are assessed under deeming rules rather than actual investment earnings.
Current income test rules and thresholds are published by Services Australia.
Rather than assessing the actual return earned on some financial investments, Centrelink may assume those investments earn income at prescribed deeming rates.
This means your Age Pension entitlement may not increase simply because your investments produce lower returns during a particular year.
Understanding deeming is important when planning retirement income.
Current deeming rates are published by Services Australia and may change over time.
Yes.
Many Australians receive a part Age Pension.
As assets reduce over time or financial circumstances change, entitlement may increase.
Likewise, if assets increase substantially, entitlement may reduce.
Your eligibility is not necessarily fixed for life.
Many Australians assume they won't qualify because they have superannuation or investments.
However, circumstances often change throughout retirement.
Incorrect.
Many retirees receive a part pension.
Changes in asset values may affect future eligibility.
Financial decisions should never be made solely to maximise Centrelink benefits.
A broader financial strategy should always come first.
Good retirement planning doesn't simply ask:
"Will I receive the Age Pension?"
Instead it considers:
The objective is to build a sustainable retirement income strategy rather than relying on one source of income.
Possibly.
Superannuation does not automatically prevent you from receiving the Age Pension.
Eligibility depends on your overall circumstances.
In most situations, the principal place of residence is exempt from the assets test.
Some people continue working while receiving the Age Pension.
Employment income may affect your entitlement depending on your circumstances.
Centrelink should be one consideration within a broader retirement strategy.
Financial decisions should not be made solely to increase pension entitlements.
About the author
Founder & Principal Financial Adviser
Josh Hampton is the Founder and Principal Financial Adviser at Hampton Wealth Management, helping professionals, families and retirees make confident financial decisions.
Retirement isn't about stopping work. It's about creating choice, and building the income and confidence to support the lifestyle you want for decades to come.
Last Reviewed: August 2026
Read ArticleLearn how much super you may need to retire in Australia, the factors that influence retirement income and why your lifestyle matters more than a single target balance.
Last Reviewed: August 2026
Read ArticleGeneral Advice Warning. General information only, this website does not consider your personal circumstances. Before acting on any information, you should consider whether it is appropriate for your objectives, financial situation and needs. The Hampton Group Australia Pty Ltd T/A Hampton Wealth Management is a Corporate Authorised Representative of Beryllium Advisers Pty Ltd (AFSL 528250). Josh Hampton is an authorised representative (1002846) of Beryllium Advisers Pty Ltd (AFSL 528250). Prepared 5 August 2026. Last Reviewed 5 August 2026.
Understanding how the Age Pension interacts with your superannuation, investments and retirement income can be complex. A personalised retirement plan can help you understand your likely entitlements and how they fit within your broader financial strategy.
