Super and the Age Pension

Many people combine their super (taken as an income stream) with a Government Age Pension to provide their income in retirement. This can be an effective way of maximising the benefits of a Government Age Pension and improving your quality of living as a self-funded retiree.

Government Age Pension income and assets test

It's important to remember that the Age Pension is designed to provide a 'safety net' for those who do not have enough superannuation or other financial resources to provide an adequate retirement income. So the Age Pension works in conjunction with super. In order to qualify for the maximum pension amount you need to pass both the asset and income tests. For more information on these tests, read our Pension PDS.

As at 20 September 2016, the maximum fortnightly Government Age Pension payment is:

Single $877.10*
Couple  $661.20* (each)

* This payment includes: fortnightly pension supplement that is currently - single $65.10, couples $49.10 (each). Fortnightly Clean Energy Supplement that is currently - single $14.10, couples $10.60 (each).
Source: as at 20 September 2016 www.humanservices.gov.au

Government Age Pension eligibility

The Australian Social Security system is targeted to those most in need. To ensure it goes to the right people, applicants are means-tested. A number of factors can affect your eligibility for the Government Age Pension, so you should review your circumstances regularly.

Your eligibility depends on:

  • Your age
  • The amount of super and other savings you have
  • Your marital status
  • Whether you own your own home, and
  • Whether you take your super as a lump sum, or as an income stream.

Any change to your income or assets, work situation or housing arrangements must be reported to Centrelink within 14 days in case it affects your payment. For more information, visit the Centrelink website.

Our Financial Planners can give you more information on the Government Age Pension. We can help you with strategies to save and plan for retirement. Call them on 1300 551 352.

More information

For more information on Super and the Age Pension, visit Super Guru.