The Age Pension and Your Investments: How They Interact in Australia
Last reviewed 26 May 2026 · FiftyPlus Finance
Many Australians use a combination of the Age Pension and their own savings to fund retirement. How those savings are structured can affect how much Age Pension you receive.
This is general information only. Current rates and thresholds are published by Services Australia and change regularly.
Who can receive the Age Pension
To be eligible you generally need to have reached Age Pension age, meet Australian residency rules, and pass both the income and assets tests. Age Pension age has been gradually increasing — confirm yours with Services Australia.
Two tests
Centrelink assesses Age Pension eligibility under both an income test and an assets test. The test that produces the lower payment is the one that applies.
Most financial assets — including super in pension phase and account-based pensions — are 'deemed' to earn a set rate for the income test, regardless of actual returns. The deeming rate is set by government and updated periodically.
Assets test
Counts the market value of most assets you own (and your partner's, if applicable), excluding the home you live in. Different thresholds apply depending on whether you're single or partnered, and a homeowner or non-homeowner.
Income test
Counts deemed income from financial assets plus actual income from work, rental property, overseas pensions and certain other sources. The Work Bonus can reduce assessed employment income for eligible recipients.
Why structure matters
Two people with the same total wealth can receive different Age Pension amounts depending on how their money is held. For example, the family home is generally not counted under the assets test, while money sitting in a bank account is. downsizer contributions can interact with this — proceeds added to super count under the assets test even though the home itself did not.
This is why a conversation with a licensed financial adviser or a Services Australia Financial Information Service (FIS) officer — a free service — can be valuable before making large changes.
Other entitlements to ask about
Beyond the pension payment itself, recipients may be eligible for the Pensioner Concession Card, the Commonwealth Seniors Health Card, energy and rates concessions, and pharmaceutical benefits. Current eligibility is on Services Australia.
Putting it together
Understanding how the Age Pension interacts with your super and other investments is a core part of retirement planning. Our broader notes on retirement income options and superannuation in retirement explain how the pieces commonly fit together.
To receive a written overview at your own pace, you can request your free information pack.
Frequently asked questions
Is the Age Pension means-tested?+
Yes. It is subject to income and assets tests, plus age and residency requirements.
Is my home counted?+
The home you live in is generally exempt from the assets test, though different thresholds apply for homeowners and non-homeowners.
What is deeming?+
Deeming is a rule that assumes your financial assets earn a set rate of income for the income test, regardless of what they actually earn.
Where is the official source?+
Services Australia (servicesaustralia.gov.au) administers the Age Pension and publishes current thresholds and rates.
Can I get free help understanding this?+
Yes. Services Australia offers a free Financial Information Service (FIS) that can explain how the rules apply in general terms.
Related guides
Important — please read
The information provided on this website is general information only. It does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider its appropriateness having regard to your own circumstances and obtain advice from a qualified, licensed financial adviser.
All investments carry risk, including the possible loss of some or all of the capital invested. Past performance is not a reliable indicator of future performance. No outcome, return, income or capital guarantee is made or implied.