A healthy super balance doesn’t always rule you out of the Age Pension
Many Australians assume a healthy super balance means they’re not eligible for the Age Pension. But that’s not always the case.
If you have a decent superannuation balance and other financial assets, you may have ruled out the possibility of getting the Age Pension.
Depending on your age, living arrangements, income and assets you may still qualify for a full or part pension. From July 1, 2026, the Australian Government increased a range of Age Pension means-testing thresholds, allowing some retirees to earn more income or hold more assets before their pension entitlement is reduced or removed.
The current maximum Age Pension, including the pension supplement and energy supplement, is $1,200.90 a fortnight for singles and $1,810.40 for couples combined. The rates are adjusted on 20 March and 20 September each year.
What if I have financial assets?
In Australia, you can still receive the Age Pension if you have superannuation and other assets, but only if you meet the age, residency, income and assets test requirements.
To qualify, you must be 67 or older and, in most cases, be an Australian resident who has lived in Australia for at least 10 years. For full details on residency requirements and eligibility, visit Services Australia.
One of the key eligibility tests is the income test, which measures you and your partner’s income from all sources, including employment, annuities, investments and any earnings outside Australia. If your income is above a certain limit, your pension payment will be reduced, or you may not be eligible at all.
For most pensioners, a single person can earn up to $226 a fortnight without their pension being reduced. It will be reduced by 50 cents for each dollar earned over $226. The equivalent for couples is income of $396 per fortnight.
What are the asset limits?
Services Australia also assesses a range of other assets such as investment properties, caravans, cars and boats, plus any financial investments or business assets. Your super balance is treated as part of your assessable assets, but your principal home, if you live in it and up to the first 2 hectares of land it’s on, is not counted as an asset.
To be eligible for a full Age Pension, you can now have up to $333,000 in assessable assets as a single homeowner, or $499,000 for a homeowner couple combined. Non-homeowners can have more, with limits of $600,000 for singles and $766,000 for a couple combined.
If your assets are above the full-pension thresholds, you may still be eligible for a part pension until you reach the upper cut-off points. These limits are $733,500 for singles who own their home, and $1,000,500 for non-homeowners. For couples, the combined asset cut-off is $1,102,500 for homeowners and $1,369,500 for non-homeowners. Higher limits may apply where members of a couple are separated due to illness.
If you’re unsure whether you qualify for an Age Pension or part pension, consider seeking professional advice or contacting Services Australia for more information.
As many retirees navigate ongoing cost-of-living challenges, additional government support can provide valuable financial breathing room.
Contact us if you have any questions.
Source: Vanguard
This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™
Reproduced with permission of Vanguard Investments Australia Ltd
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance. © 2026 Vanguard Investments Australia Ltd. All rights reserved.
Important: Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
