The Government Age Pension pays you a regular income each fortnight. If you have retired and are eligible, it can work together with income you get from other sources. These may include your super and other savings or investments.
Key points:
- You’re eligible if you’re 67 years or older, an Australian resident, and pass an income and assets test.
- You could even receive the Government Age Pension if you’re using super money in retirement.
- The Government Age Pension is different to an account-based pension from your super.
You could be eligible for the Government Age Pension
This short video explains how the Government Age Pension works with your super. It also explains other Government benefits you might be eligible for.
Super is one part of your income in retirement. For many Australians it’s the biggest part.
But some of us might worry we won’t have enough in our super and savings to afford retirement.
To help bridge the gap, there’s the Government Age Pension, which is a fortnightly income support payment to help eligible Australians in retirement.
More than 60% of Australians over the age of 65 receive extra income from the Government Age Pension, to help fund their retirement.
To be eligible, you need to be 67 years old.
You’ll also need to meet the income test and an asset test.
These measure the value of any savings or investments you have, as well as the things you own, besides your principal family home.
Over time, your income and assets will change.
So even if you don’t qualify now or when you retire, you can keep checking to see if that changes.
You’ll also receive a Pensioner Concession Card. This saves you money on essentials like medicine and health services.
Depending on where you live, it can even save you money on gas, water, electricity, car registration and public transport.
If you’re not eligible for the Government Age Pension, you might qualify for a Seniors Health Card which helps lower the cost of prescription medicines, health services, energy bills and transport.
To learn more about Government benefits, visit aware.com.au/agepension
We have partnered with Retirement Essentials to help you feel confident that you’re getting all your Age Pension entitlements.
Use their calculator to find out how much you could get if you’re eligible.
You may not be eligible for the Government Age Pension now, but over time your income and assets will change.
So it’s important to keep checking because you could become eligible.
1 Australian Institute of Health Welfare, March 2021
1. You need to reach a certain age
The qualifying age for the Age Pension is 67 years or older.
2. You need to pass an income and assets test
Apart from your age, the Government uses an income and assets test to see if you're eligible. The income test looks at all sources of income that you receive. This includes income from financial investments such as your super2.
The assets test looks at all your financial assets, aside from your home.
The test that results in the lower Government Age Pension payment is the one that is used to decide how much you receive. Find out more about the income and asset tests.
Government Age Pension amounts for singles and couples
Being in a couple affects how much you could get paid.
3. You must be an Australian resident
On the day you apply and for at least 10 years before.
2 Centrelink use rules to work out how much income your financial investments produce. These rules assume your assets earn a set percentage of income. This may be different to what they actually earn.
Every six months, we provide a report to Centrelink on how much you receive from your retirement income stream. If this amount changes, it could affect how much Government Age Pension you get.
Other Government benefits
When you receive the Government Age Pension, you also get a Pensioner Concession Card. This provides discounts on medicine, health and other Government services.
Depending on the state you live in, you could get discounts on gas, water, electricity, car registration and travel concessions. This means the Government Age Pension helps pay for, and lower, your expenses too.
The Commonwealth Seniors Health Card is available for eligible people. Even if you’re not eligible for the Government Age Pension, you may be eligible for this card. Some state and local governments offer extra health, transport, education and recreation concessions.
If you receive a Centrelink payment, like the Government Age Pension, and pay rent, you may qualify for rent assistance. How much you’ll receive depends on how much rent you pay.
If you own a home, you are not eligible.
Find out more about Rent Assistance at Services Australia.
This scheme offers eligible Australians a chance to supplement their existing retirement income with a tax-free fortnightly loan from the government.
This loan uses your house as security.
You are charged interest on the loan, but regular repayments are optional. You can stay in your house until it’s sold, with the loan repaid from the proceeds of the sale.
Find out more about the Home Equity Access Scheme at Services Australia.
If you’re an eligible pensioner, the Work Bonus can help you earn more income from working without reducing your Government Age Pension.
This means you can earn up to $300 a fortnight on top on your Government Age Pension.
Find out more about the Work Bonus at the Department of Social Services.
For a full list of Government benefits to help support you in retirement, visit Services Australia
Still have questions?
Make a free appointment with one of our experts.
Where to next?
Attend a retirement webinar
Join our experts as they break down super and finances into easy-to-understand topics through our live webinar education series.
Aware Super has partnered with Retirement Essentials
Applying for an Age Pension can be confusing and difficult. We've partnered with Retirement Essentials to help make this process simpler. Use their eligibility calculator to find out how much you could get.
Speak to a financial planner
A financial planner can work through complex financial matters and help you create the right strategies to achieve your financial goals in retirement. They’ll explain any next steps, fees and charges before progressing.