The Age Pension: a cornerstone of retirement income

By Tony Densley

For many Australians, the Age Pension forms the foundation of their retirement income.

From 20 September 2025, the maximum fortnightly payment increased by $29.70 for singles and $44.80 for couples, bringing payments to $1,178.70 per fortnight for singles and $1,777.00 for couples (combined).

These regular adjustments help your pension keep pace with living costs.

Age & residency requirements

To qualify for the Age Pension you must be at least 67 and meet Australian residency rules. You also need to satisfy both an assets test and an income test. Even if you pass the age requirement, failing either test can reduce or eliminate your pension.

Assets test

Your total assets (excluding your family home if you own it) must be under certain limits. For a full pension, single homeowners need assets under $321,500 and non‑homeowners under $579,500.

Couples must have combined assets below $481,500 (homeowners) or $739,500 (non‑homeowners).

You can still receive a part pension if your assets are less than $714,500 (single homeowners) or $972,500 (single non‑homeowners), or $1,074,000 (couple homeowners) or $1,332,000 (couple non‑homeowners).

Income test & Work Bonus

Your income also matters. Singles can earn up to $218 per fortnight and couples $380 per fortnight before the pension begins to taper.

Beyond that, the pension reduces by 50 cents for each extra dollar earned. Thanks to the Work Bonus, the first $300 per person per fortnight of employment income is not counted, meaning you can work a little without reducing your pension.

Putting the rules into perspective

Margaret and Peter, both 67, illustrate how the tests work. Margaret owns her home, has $350,000 in assets and earns $150 per fortnight from casual work. She falls below both the asset and income thresholds and receives the full pension.

Peter rents and has $800,000 in assets. He’s above the full‑pension asset limit but below the part‑pension cap, so he receives a reduced pension. Their stories show how assets and income interact to determine your payment.

Why planning matters

The Age Pension is a safety net, not a complete retirement plan.

With singles receiving about $30,646 a year and couples $46,202 a year, many retirees will need superannuation and investments to maintain their desired lifestyle. Understanding the thresholds helps you decide when to access your super, how much to withdraw, and whether to downsize or sell assets.

Review your eligibility regularly; rates and thresholds change every March and September.

How Face Up Life can help

Retirement shouldn’t feel like navigating a maze.

At Face Up Life we guide you through the complexities of the Age Pension, superannuation and investments.

We help you clarify your goals, project your income with and without the pension, and explore strategies to maximise your entitlements.

Bridging the Gap

The Age Pension is an important part of many Australians’ retirement income, but it’s only one piece of the puzzle. By understanding the rules and planning ahead, you can ensure the pension works alongside your super and investments to support the life you want.

If you’re unsure where to start, book your free initial call. We’ll help you bridge the gap between where you are and where you want to be, so you can retire with confidence and peace of mind.

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