29/09/2026
đľ 7 Things to Know About the Age Pension
The Age Pension can be an important part of retirement income for many Australians â but the rules can sometimes feel a little complicated.
Here are 7 useful things to know if youâre approaching retirement or already receiving the Age Pension.
1ď¸âŁ Age Pension age is currently 67
For people born on or after 1 January 1957, Age Pension age is 67. Youâll also need to satisfy other eligibility requirements, including residency and means testing.
2ď¸âŁ You can start your claim before you turn 67
You donât necessarily need to wait until your birthday. An Age Pension claim can generally be lodged up to 13 weeks before reaching Age Pension age, which can help avoid unnecessary delays if youâre eligible.
3ď¸âŁ Centrelink looks at both your income AND your assets
The Age Pension is means tested. Centrelink applies both an income test and an assets test, with the test producing the lower entitlement generally determining how much pension is payable.
Importantly, being over the threshold for a full pension doesnât necessarily mean you receive nothing â you may still qualify for a part Age Pension.
4ď¸âŁ Your family home is generally not counted as an asset
For Age Pension purposes, your principal home is generally exempt from the assets test, regardless of its value.
That means two retirees with the same overall net wealth can sometimes have very different Centrelink outcomes depending on how their wealth is structured.
5ď¸âŁ Centrelink doesnât simply use the interest your investments actually earn
Many financial investments â including cash, bank accounts, shares, managed funds and most account-based pensions â are assessed using deeming rules.
Centrelink effectively assumes those financial assets earn a prescribed rate of income, regardless of the income actually received.
This is one reason the Centrelink assessment of your retirement finances can look quite different from your tax return.
6ď¸âŁ Continuing to work doesnât automatically mean losing your Age Pension
The Work Bonus can reduce the amount of eligible employment income counted under the Age Pension income test.
Eligible pensioners currently accrue a $300 Work Bonus each fortnight, with unused amounts able to build up to a maximum Work Bonus balance of $11,800. New eligible pensioners can also begin with a $4,000 starting balance.
7ď¸âŁ Be careful assuming that giving money away will automatically improve your Age Pension
Youâre free to give away as much as you like, but Centrelink has specific gifting rules.
The current gifting free areas are $10,000 in one financial year and $30,000 over five financial years. Amounts above those limits can continue to be counted under the assets test and deemed under the income test for five years.
đĄ The bigger picture
Centrelink is only one part of retirement planning. Your superannuation, investments, home, employment income and the position of your spouse can all interact with the Age Pension rules.
Understanding how everything fits together can make retirement feel a lot clearer.
At ASAP Financial Advising, we help people across the Hawkesbury and Western Sydney understand their retirement position and build a plan around the retirement they want.
đ www.asapfinancialadvising.com.au
General information only. This post does not take into account your objectives, financial situation or needs. Centrelink rules, rates and thresholds can change. Consider whether the information is appropriate for your circumstances and seek personalised advice where required.