The Centrelink Age Pension is an Australian Government payment that provides ongoing financial assistance to eligible older Australians during retirement. In addition to regular income payments, eligible recipients may also qualify for a range of government concessions and benefits. The amount of Age Pension you receive depends on your individual circumstances.
To be eligible for age pension, you need to meet the following conditions:
Age Requirement
You must be at least 67 years old, to be eligible for age pension. Centrelink has now discontinued the perservation age as a guideline.
Income Test
Whether you receive a full or part Age Pension depends on the amount of income you earn each fortnight. Different income limits apply to singles and couples. If your assessable income exceeds the relevant threshold, your Age Pension entitlement may be reduced:
Assets Test
To receive a full Age Pension, your total assessable assets must be below the applicable asset threshold.
If your assets exceed the full pension limit but remain below the maximum allowable threshold, you may still qualify for a part Age Pension
If you satisfy both the income and assets tests, Centrelink will determine your Age Pension entitlement based on the test that results in the lower payment, under the Income and the Assets Test.
The Centrelink treatment of account-based pensions depends on when the pension commenced:
- Account-based pensions commenced on or after 1 January 2015 are generally assessed as financial assets and are subject to both the income and assets tests.
- Account-based pensions commenced before 1 January 2015 may continue to receive grandfathered treatment if the recipient was already receiving eligible Centrelink payments on 1 January 2015. In these circumstances, the pension are partially exempt for the Income Test.
For further information about the Age Pension and current eligibility requirements, refer to the official Centrelink guidance.
If you have a Self-Managed Super Fund (SMSF), you may also be able to start drawing retirement benefits once you have reached your preservation age and satisfied a condition of release. For more information on commencing an SMSF pension, see our guide.