The Age Pension remains the backbone of Australia’s retirement income system. It was first legislated in 1908 when life expectancy for men exceeded the pension age of 65. Women were only added to these entitlements two years later, but could qualify from age 60. Since that time there have been extensive changes to this vital source of retirement income, but it continues to deliver extremely reliable income support for older Australians. It is administered by Services Australia (the Department of Social Services) and delivered through its agency, Centrelink. Over time the face-to face-dealings with Centrelink staff have given way to digital communications. This happens through the myGov website which amalgamates many Commonwealth Government services, including Centrelink, Medicare and the Australian Tax Office (ATO).
Most retirees receive an Age Pension
Currently the Age Pension provides income to almost seven out of ten Australians who are aged 67 or older. By the time older Australians reach their 80s, 80% will receive Age Pension payments. This is largely because, by then, they will have reduced their savings by spending during their earlier retirement years. An Age Pension entitlement is not just a fortnightly payment. It also offers two supplements and those who are eligible will automatically receive a Pension Concession Card which gives recipients reduced medical and pharmaceutical costs and energy, transport and travel discounts.
Who can get the Age Pension?
Eligibility depends upon a few factors. The most important are your age, your residency and your ability to pass the means test.
On 1 July 2017, the minimum age for both men and women to qualify for the Age Pension began to increase. For those born on or after 1 July 1952 the pension age reached 67 on 1 July 2023. No further age increases are currently legislated.
On the day that you apply for an Age Pension you must be physically in Australia, living in Australia and an Australian resident for at least 10 years (five with no break). Other conditions may also apply.
Means Testing
The Means Test includes both an income and assets test. You must pass both tests in order to be eligible. The limits for a full Age Pension and a part Age Pension vary and can often change. This here’s how the Income and Asset test limits work.
How much will you get?
The Age Pension rates for a full Age Pension are:
| 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 |
| Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
| Total | $1,096.70 | $826.70 | $1,653.40 | $1,096.70 |
The amount you will receive is determined by the current income and asset test limits, but even $1 per fortnight of a part-Age Pension entitlement will allow access to the Pension Concession Card. Age Pension rates are reviewed twice a year, in March and September in line with the cost of living, the price of goods typical for older households and the current average male weekly wages. These adjustments ensure that those receiving Age Pension benefits are kept in touch with earnings across the broader community. Payments are made fortnightly direct into recipients’ bank accounts. Australians living overseas receive payments fortnightly or monthly, depending upon the length of time that they have been away.
Keep an eye on your entitlements
Even if you aren’t eligible today, it’s highly likely that you will become eligible for at least some pension payment at some point during your retirement. This is worth bearing in mind as you consider your retirement spending plans. Retirement Essentials members can now access a Safe Spending Simulator which helps you understand how long your savings will last and how they combine with Age Pension entitlements. You can also check your eligibility at any time using the Retirement Essentials Age Pension Eligibility Calculator.
What else do you need to know?
The Age Pension rules do change a lot and can have a complex interaction with other forms of retirement income including superannuation income streams, annuities, employment income and gifts and inheritances. It’s important to stay up to date with those aspects of the Age Pension that may affect you. Retirement Essentials covers all the information you need to know in our weekly enewsletters so if you are not already receiving them, you can subscribe here.
Don’t forget, if you do receive a benefit, it’s your job to keep Centrelink up to date with any and all changes in your financial situation. This includes changes to income, assets, your housing situation and your partner relationship. Not doing so could prove costly.
Do you need support?
Retirement Essentials offers many different forms of support for those who are receiving an Age Pension as well as those who wish to apply:
Check your eligibility using the free Age Pension Eligibility Calculator at any time
We can also help you complete your application over the phone.
All too confusing?
Our goal is to put you in control, which is why we provide so much information for you. But sometimes it’s helpful to speak to an expert. We know because we speak with thousands of people just like you every year.
If you have questions, why not book a 30-minute consultation now. At a cost of only $75 it will be worth the peace of mind alone!
Any other aspects of the Age Pension that you don’t understand?
We’re here to help, so do let us know if there are any other aspects of the rules that remain a mystery.
Great support, thanks.
If I book a consultation, where do we meet? I have few clarifications about my Pension.
And will you help me find the clarification in Centrelink Rules/laws ?
Thanks
Hi Bhanu, thanks for asking for more info about our consultations! Further to this comment I will send you an email but in response to your queries: The consultation is a phone call so you do not have to physically meet with us anywhere and yes we will be happy to clarify any Centrelink rules/laws that you are concerned about. If anyone else reading this would like to book a consultation the link is HERE.
The earnings concession appears contradictory.
It remains at $300. 00 but the limit is increased to $11800.
the is supposed increase is misleading and false as to its likely effects.
Also if earnings in a fortnight preclude payment I receive no pension yet my earnings credit is reduced although I have not utlizeded the concession for that fortnight.
I think the concession publicity regarding older workers is false and doubt if the effects are in line with the publicised staements from Government
I know it’s my job to keep Centrelink appraised of changes to my financial situation – but I lodged information about a new business more than 3 months ago, I’ve lodged everything that was asked for, but my online Assets and Income has been frozen ever since while the data are assessed, so I haven’t been able to lodge further updates! How do I comply with the 14 day rule in this situation?
Hi Him, thank you for sharing your experience with us and I’m sorry to hear how frustrating it has been for you. So long as you have done your part and declared everything necessary in time, then it doesn’t matter how long it takes Centrelink to actually make any changes, the record will show that you abided by the rules and any applicable changes will ultimately be back dated to the date you advised of the change. The frustrating part is not being able to make any further changes in the interim, given how long it has been I would suggest calling Centrelink on 132 300 at 8am your time when they first open to try and get it progressed in case it has been put on hold and forgotten about.
Hi people I’m curious as to how many seniors have gone back to do some work on the Work Bonus Scheme i have after i did my researching and asking lots of questions with Centrelink I’ve returned to nursing only doing about 25 hrs a fornight im 68 i don’t have a problem with it i report fortnightly and have not lost any of my age pension yes I’ve payed some tax some people have had a problem with it Research and have your questions ready to ask write down the answers also day /time person you are talking to and referance number and keep that info so you can come back later if needed i look forward to yours and others comments
Hi, my husband and I got our permanent residence on 4th Nov 2013, and we have been residing in Australia since 4th January 2014, so we have completed 10yr of our stay and are no longer under the 10years bond that our son undertook for us.
my husband is 80 yrs old and I am 77 yrs old. we have no source of income, our son has supported us for the last 10yrs, and we want to lighten his burden now, hoping Centrelink can help us. We are now citizens of Australia since last 4+ yrs.
My question is that are we eligible for Age Pension and how do we apply for it to Centrelink? Thanks Naomi
Hi Naomi, thank you for sharing your situation with us! Yes you are now eligible to apply based on your residency status, there are still income and asset tests to be met but from what you have said you should pass these. If you would like our assistance with applying then the first step is to check your eligibility using our free, online calculator HERE.
Hi, I am 70years old and retired my husband is 9 years younger and still working. . Can I claim a single state pension in my own right?
Will my husbands Super and assets , like his car, be taken into account for my pension or just the assets in our joint names ?
Thanks Cathy
Hi Cathy, thanks for your query! Centrelink base single vs couple claims for Age Pension on whether or not you are in a relationship, not whether you are both applying or only one. As such you will be applying for the couple’s Age Pension. Your husband’s income and assets will impact how much Age Pension you can receive, the only exemption available will be if his super is still in accumulation then that will be exempt from assessment. All other income/assets of his will be factored in whether joint with you or in his name only.