Super and the Age Pension
In an ideal world, you would have enough superannuation savings to see you more than comfortably 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 comfortable retirement lifestyle in and of itself.
How does it work?
Depending on your birth date, from 1 July 2017 Age Pension age will be 65 years and 6 months. After that, Age Pension age will go up 6 months every 2 years until 1 July 2023.
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|
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.
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 20 September 2018 and are effective to 19 March 2019.
|Per fortnight||Single||Couple each||Couple combined||Couple apart due to ill health|
|Maximum basic rate||$834.40||$629.00||$1,258.00||$834.40|
|Maximum Pension Supplement||$67.80||$51.10||$102.20||$67.80|
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.
We’re here to help. So let’s talk.
If you would like to discuss the Age Pension, or if you have any other questions, please call our Member Services Team on 1300 360 988, or email us.