Super and the Age Pension
In an ideal world, you would have more than enough superannuation savings to see you modestly through your retirement.
However, not everyone can fully fund their own retirement. The Australian Government recognises this, and offers the Age Pension as a supplement to your retirement income.
The aim is that the Age Pension will make up any shortfall in your income. It is considered the minimum amount you can live on; it is not designed to fund a modest retirement lifestyle in and of itself.
How does it work?
Depending on your birth date, from 1 July 2017 Age Pension age will be 65 years and 6 months. After that, Age Pension age will go up 6 months every 2 years until 1 July 2023.
| If your birth date is | You’ll be old enough at |
|---|---|
| 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 |
The Age Pension is means-tested to ensure that payments go to those who need them. Most people will be eligible for a full or part Age Pension, even if they receive superannuation benefits.
To qualify for the Age Pension, whether in full or in part, you must meet the requirements of both an assets test and an income test. You will receive the smaller of the two pensions generated by applying these tests.
There are different rates of Age Pension payments for single people and couples. Read about how your relationship status can affect your payment rate.
The amounts on this page are the maximum rates as at 1 June 2022.
Normal rates
| Per fortnight | Single | Couple each | Couple combined | Couple apart due to ill health |
|---|---|---|---|---|
| Maximum basic rate | $900.80 | $679 | $1,358 | $900.80 |
| Maximum Pension Supplement | $72.70 | $54.80 | $109.60 | $72.70 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total | $987.60 | $744.40 | $1,488.80 | $987.60 |
The Age Pension forms part of your taxable income. However, if it is your only source of retirement income, you will pay no tax. If you’re on the Age Pension, you also receive health benefits and reduced charges on rates, telephones, gas and electricity, car registration and public transport.
For more detailed information about the Age Pension, including the appropriate thresholds and other government benefits, contact Centrelink.
Get a Retirement Health check
Don’t have much super and want to know if you’re eligible for the Age Pension? Find out in 30 minutes with our complimentary Retirement Health Check provided by one of our financial planners.
If you book a Retirement Health Check, we will:
- Arrange a Zoom call or phone call with you at a convenient time – 30 to 45 minutes is plenty.
- Consider your current super balance, any contributions you make or receive, when you plan to retire, how much income you’ll need in future, and how the Age Pension could help you. If you have a partner, we can include them too.
- Create a projection of your future savings and how long they’re likely to last.
By the end of the call, you’ll know if your super is on track for your retirement.
Plus, we’ll give you a copy of your projection and a short report about the meeting.