Super and the Age Pension
In an ideal world, you would have more than enough superannuation savings to see you modestly through your retirement.
However, not everyone can fully fund their own retirement. The Australian Government recognises this, and offers the Age Pension as a supplement to your retirement income.
The aim is that the Age Pension will make up any shortfall in your income. It is considered the minimum amount you can live on; it is not designed to fund a modest retirement lifestyle in and of itself.
Am I eligible for the government Age Pension?
It depends on your age, assets and income. Even if you are not eligible for a full Age Pension you still might be eligible for a partial Age Pension. And you may be able to use your Age Pension in conjunction with your superannuation. We highly recommend you speak with a Financial Planner.
If you are a First Super member, ask for a Retirement Health Check and we can tell you if you may be eligible for the Age Pension. There is no extra cost – this service is covered by your fund membership.
Age Pension age
You need to have reached the Age Pension age set below and meet other rules to be eligible for the Age Pension.
|If your birth date is||You’ll be old enough at|
|1 July 1952 to 31 December 1953||65 years and 6 months|
|1 January 1954 to 30 June 1955||66 years|
|1 July 1955 to 31 December 1956||66 years and 6 months|
|From 1 January 1957||67 years|
Income Test and Asset Test
The Age Pension is means-tested to ensure that payments go to those who need them. Most people will be eligible for a full or part Age Pension, even if they receive superannuation benefits.
To qualify for the Age Pension, whether in full or in part, you must meet the requirements of both an assets test and an income test. You will receive the smaller of the two pensions generated by applying these tests. We have two videos which explain the Income test and Asset test in more detail.
Age Pension payments
There are different rates of Age Pension payments for single people and couples. Read about how your relationship status can affect your payment rate.
The amounts on this page are the maximum rates as at 2 October 2023.
|Per fortnight||Single||Couple each||Couple combined||Couple apart due to ill health|
|Maximum basic rate||$1,002.50||$755.70||$1,511.40||$1,002.50|
|Maximum Pension Supplement||$80.10||$60.40||$120.80||$80.10|
Is the Age Pension taxable?
The Age Pension forms part of your taxable income. However, if it is your only source of retirement income, you will pay no tax. If you’re on the Age Pension, you also receive health benefits and reduced charges on rates, telephones, gas and electricity, car registration and public transport.
For more detailed information about the Age Pension, including the appropriate thresholds and other government benefits, contact Centrelink.
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*First Super financial planners are authorised representatives of Industry Fund Services Limited (ABN 54 007 016 195, AFSL 232514).