The Age Pension: a cornerstone of retirement income
The Age Pension: a cornerstone of retirement income
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. Singles now receive $1,178.70 a fortnight (around $30,646 a year), while couples share $1,777.00. These regular adjustments reflect cost‑of‑living changes and help maintain your spending power.
But to receive the pension, whether in full or part, you need to meet age, residency, assets and income rules. Let’s break these down.
Who qualifies?
Age and residency: You must be at least 67 and meet Australian residency rules.
Assets test: Your total assets (excluding your family home for homeowners) 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 if they own their home, or $739,500 if they don’t.
You can still receive a part pension if your assets are less than $714,500 (homeowner) or $972,500 (non‑homeowner) for singles, or $1,074,000 (homeowner) or $1,332,000 (non‑homeowner) for couples.
Income test: 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 per dollar earned. However, thanks to the Work Bonus, the first $300 per person per fortnight of employment income is not counted.
Putting the rules into perspective
Imagine Margaret and Peter, both 67. 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, so she receives the full pension. Peter, on the other hand, is renting and has $800,000 in assets. He’s above the full pension asset limit but below the part pension limit, so he still receives a reduced pension. Their situations show how assets and income tests interact.
The Age Pension isn’t all‑or‑nothing. It may be reduced if your circumstances change, but you won’t lose it entirely until your assets or income exceed the higher thresholds.
Why planning matters
The Age Pension provides a safety net, but for most retirees it’s only part of their income. Superannuation and investments can fill the gap between the pension and the lifestyle you want. Knowing the thresholds helps you make informed decisions about when to draw down your super or sell assets.
Check your eligibility regularly, especially when thresholds change in March and September each year.
Understand the asset test: your home is exempt if you own it, but other properties and investments count.
Optimise your income: taking on a few hours of paid work could increase your cashflow without reducing your pension thanks to the Work Bonus.
How Face Up Life can help
Retirement shouldn’t feel like navigating a maze. At Face Up Life we guide you through the complexity so you can see how your super, investments and the pension fit together. We help you:
Clarify your goals and timeline.
Project your income with and without the Age Pension.
Explore strategies to maximise your pension entitlements.
Make confident decisions about your retirement funding.
It’s never too early, or too late, to plan. Book your free initial call to discuss your situation. Together we’ll bridge the gap between where you are and where you want to be, turning uncertainty into confidence.
By weaving together the latest pension rates, eligibility rules and relatable examples, this blog educates and reassures readers while aligning perfectly with Face Up Life’s empathetic, story‑driven approach.
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