How Superannuation affects your Age Pension
Understand the rules, how your super is assessed, and whether you’re still eligible.
Many Australians approaching retirement wonder how their superannuation will impact their Age Pension. The good news is: having super doesn’t automatically rule you out. But how it’s assessed – and when – depends on your age, relationship status, and how your funds are structured.
We break down the rules clearly, so you know where you stand and what you may be entitled to.
How Superannuation and the Age Pension work together
Superannuation is designed to fund your retirement – the Age Pension is designed to support it. You may be eligible for both. But Centrelink applies certain tests to decide how much Age Pension you can receive once you reach pension age.
Before Age Pension age, your super is not counted as an asset. Once you reach Age Pension age (currently 67), your super is included in the assets test and may also affect the income test, depending on how you access it.
Key rules to know
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Super is exempt before you reach Age Pension age – it won’t be counted.
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Once you reach Age Pension age, your super is assessed under the income and/or assets tests.
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The value of your super fund, and whether it’s in pension phase or accumulation phase, may affect the outcome.
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Withdrawals from super may also count as income depending on how funds are drawn.
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Your partner’s super is also assessed if they are of Age Pension age.
Want to check how your super affects your Age Pension?
You may still qualify for the Age Pension
Even if you have a large super balance, you may still be eligible for a part Age Pension. It all depends on your total income and assets combined. We can help you understand how your super fits in – and what you may be entitled to claim.
Your questions answered
How accurate is your Age Pension Calculator?
Our Age Pension Calculator provides a high level estimate of your eligibility for the Age Pension based on the current eligibility rules set by Centrelink and it is based on a limited number of questions. The estimate will be reassessed and refined as you answer all the questions in your Age Pension Application with us.
Our Age Pension Calculator has been rigorously tested by a large professional services firm.
Can I get a detailed report of my eligibility and benefits?
When you have calculated your eligibility using our Age Pension Calculator you will have the option to receive your personalised Eligibility Report by email. Your personalised Eligibility Report provides a summary of how we’ve determined your eligibility as well as helpful information about applying for and keeping your Age Pension.
How long does the application process take?
Generally, we find that it takes our members less than one hour to complete our online Age Pension application. Of course this is in instances where members have all the necessary information on hand. Members with more complex circumstances may take a little longer. Once finalised, Retirement Essentials will prepare your completed forms within 2-3 business days and lodge them once you have set us as your Correspondence Nominee.
Centrelink advise that claims can take up to 13 weeks to be approved however this can vary greatly depending on the complexity of your financial situation, the quality of your supporting documents and Centrelink’s own backlog of claims to be assessed.
Why don’t I just go to Centrelink and apply there?
You can apply for the Age Pension directly with Centrelink. If you prefer doing it on your own, we can email you a helpful guide to assist. Simply check your eligibility using our Age Pension Calculator and we’ll send you the guide along with your personalised Eligibility Report.
You may be interested to know that we have conducted research with Australian retirees. The majority of retirees we surveyed who’ve applied for the Age Pension via Centrelink say they have found it frustrating and many got so frustrated that they simply gave up.
The SMH reported in October 2023 that between July 1, 2022, and January 31, 2023, two-thirds of calls to Centrelink went unanswered. So of the 25 million calls made during this time, only 8.35 million were answered. At the same time, Women's Agenda has also reported that in 2023, call wait times have ballooned to over 45 minutes on average. At Retirement Essentials we know there is a smarter way. Our Age Pension application process guides retirees through the application requirements without having to fill out the Centrelink forms – we do this for you! With only one visit to Centrelink and access to online and call-centre support. Our smarter technology is enabling more Australians to access the Age Pension.
Retirement Essentials also provides our members with ongoing support and advice to navigate keeping their Age Pension.
Calculate your eligibility for free
How we help
We take the guesswork out of the process.
Simple online tools to check your Age Pension eligibility
Clear guidance on how super is assessed
Support with applications and updates