Understanding the Age Pension and Superannuation Limits
The Age Pension is a government-funded income support program available to eligible Australians aged 66 or older (67 from July 1, 2023). To qualify for the full pension, individuals and couples must meet specific income and assets tests. Superannuation, a retirement savings scheme, is often a significant asset for retirees, and understanding how it affects Age Pension eligibility is crucial.
Superannuation and the Assets Test
The assets test assesses an individual’s or couple’s financial resources, including superannuation, to determine their Age Pension eligibility and payment amount. The table below outlines the asset limits for homeowners and non-homeowners as of March 20, 2023:
| Your situation | Asset Limit (Homeowner) | Asset Limit (Non-homeowner) |
|---|---|---|
| Single | $301,750 | $543,750 |
| Couple, combined | $451,500 | $693,500 |
| Couple, separated due to illness, combined | $451,500 | $693,500 |
Impact of Superannuation on Age Pension Eligibility
The amount of superannuation you can have and still receive the full Age Pension depends on your total assets and whether you own your home. For homeowners, the asset limit is $301,750, while for non-homeowners, it is $543,750. This means that if your total assets, including superannuation, are below these limits, you are eligible for the full Age Pension.
However, if your total assets exceed these limits, your Age Pension payment will be reduced. For every $1,000 your assets exceed the lower threshold, your pension will be reduced by $3 per fortnight.
Calculating Your Age Pension Eligibility
To determine your Age Pension eligibility and payment amount, you can use the Age Pension calculator provided by the Department of Human Services. This calculator takes into account your income, assets, including superannuation, and other relevant factors to provide an estimate of your pension entitlement.
Maximizing Your Age Pension
While superannuation is an important part of retirement planning, it’s crucial to understand how it affects your Age Pension eligibility. By carefully managing your superannuation contributions and withdrawals, you can maximize your Age Pension entitlement and ensure a comfortable retirement.
Additional Considerations
- The Age Pension income and assets tests are updated regularly. It’s essential to stay informed about the latest changes to ensure you are receiving the correct pension amount.
- If you are unsure about your Age Pension eligibility or have questions about superannuation, it’s advisable to seek professional financial advice.
Understanding the interaction between superannuation and the Age Pension is crucial for retirees. By carefully managing your superannuation and assets, you can maximize your Age Pension entitlement and secure a comfortable retirement. Remember to stay informed about the latest changes to the Age Pension and seek professional advice if needed.
Age Pension Calculator Age Pension Calculator
An income test and an assets test are administered to applicants in order to determine their eligibility for the aged pension; the test that yields the least amount of pension is the one that is used.
The family home, assets in superannuation under pension age, funeral bonds up to $15,000 for a single bond, an accommodation bond paid to an assisted living facility, and gifts within permissible limits are among the assets that are exempt.
Vehicles, boats, and household goods are appraised at market value rather than replacement value.
The assets test has different thresholds for homeowners and non-homeowners.
Starting on March 20, 2024, a pensioner who is single may earn $204 every two weeks and still be qualified for the full $1116 single pension. 30 a fortnight, including all supplements. Additionally, they can work for themselves and make $460 per two weeks; this is not taken into account for the income test. When earnings surpass $204 per two weeks, the pension is reduced by $0. 50 for every additional dollar earned.
A retired couple may begin earning $360 per fortnight combined as of March 20, 2024, and still be eligible for the full $1682 pension. 80 a fortnight, including all supplements. Additionally, they can work for themselves and make $460 per two weeks; this is not taken into account for the income test. When earnings surpass $360 per two weeks, the pension is reduced by $0. 50 for every additional dollar earned.
Under the assets test, homeowner singles with assessable assets under $301,750 can begin receiving their full pension on March 20, 2024; for homeowner couples, the amount is $451,500. The numbers for non-homeowners are $543,750 and $693,500 respectively.
When assessable assets surpass the lower limit, the pension is reduced by $3 per two weeks for every $1000 that the assessable assets surpass the lower limit.
A single homeowner can receive a partial pension and have up to $674,000 in assessable assets; the higher threshold for a single non-homeowner is $916,000. The higher threshold for a couple is $1,012,500 for homeowners and $1,245,500 for non-homeowners.
Note that all supplements are included in the calculated answers, and if a couple is being calculated, the joint pension is included. Additionally, it is believed that both parties are of retirement age. Status of Marriage: Single, Couple, Are You a Homeowner? Yes, Yes, $1, Assessable Assets ($, Combined if Couple), Income per Fortnight ($), Combined if Couple
How much will my superannuation affect the Age pension?
FAQ
How much super can I have before it affects the pension?
How much money can you have and still get the Australian pension?
|
Situation
|
|
Latest limit
|
|
Single
|
Homeowner
|
$674,000
|
|
Single
|
Non-homeowner
|
$916,000
|
|
Couple (combined)
|
Homeowner
|
$1,012,500
|
|
Couple (combined)
|
Non-homeowner
|
$1,254,500
|
Can you combine super and pension?
What is the maximum super pension payments?
Do you get a pension if you have a Super?
All of your assets (super and non-super), as well as your income sources, are assessed to determine how much, if any, Age Pension payments you are entitled to receive. Some assets, such as your home, are exempt from Age Pension assessment. So too are certain types or parts of incomes. How Much Super Can You Have and Still Get the Pension?
Does My Super affect my age pension?
Ultimately, your super will affect the amount of Age Pension you receive, yet no more so than how your bank account balances affect your Age Pension entitlements. But, before you determine your eligibility for the Age Pension based on your income and assets levels, you first need to make sure you have reached Age Pension age.
How can super & pension work together?
The two can work together to support you in retirement. Super is the main source of retirement income for many people living in Australia. A large percentage of the retired population also qualifies for some level of Government Age Pension payment. These extra payments can support your super and help you manage your retirement budget.
How can my Super and the government age pension work together?
Find out how your super and the Government Age pension can work together. Can access once you reach preservation age and meet a condition of release. Can apply at qualifying age, if eligible. Money is from your savings over your working life, held in your super fund. Money is from the government. You choose how much you access and when.