What if spending some of your savings could actually increase your income in retirement? For people with assets just above the Age Pension cut-off, that’s not just wishful thinking—it’s a real and measurable opportunity.
From 20 March 2025, the updated Age Pension asset thresholds mean that even a small reduction in assessable assets could make you eligible for a valuable part-Age Pension. The amount that you receive may start small but can grow over time and deliver substantial financial benefits across retirement.
When the pension stops
The Age Pension is subject to an asset test that reduces your payment by $3 per fortnight for every $1,000 you have above the lower threshold. Once you reach the upper limit, the payment stops entirely.
For couples who own their home, that upper limit is $1,047,500. If your combined assets exceed that—even by just one dollar—you won’t receive any Age Pension at all.
Here are the key thresholds for part-Age Pension eligibility from 20 March 2025:
Your situationHomeownerNon-homeownerSingle$697,000$949,000Couple combined$1,047,500$1,299,500Couple, separated due to illness$1,236,000$1,488,000
These thresholds apply to both your financial and personal assets. For couples, it’s the total amount that counts.
