What You Need to Know About Applying for the Age Pension
Retirement marks not just the end of your working life—but the start of a new, financially important chapter. Whether you picture yourself in the garden, travelling, or spending more time with loved ones, understanding how to manage your income is critical.
If you’re within 10 years of retiring, this is a good time to review your financial position and plan ahead. This article outlines how superannuation, personal savings, and the Age Pension work together—and the key considerations when accessing support.
The Three Pillars of Retirement
Australia’s retirement system is based on three key income sources:
Superannuation: Compulsory employer contributions (12% from July 2025).
Personal savings and assets: Includes your home, investment property, shares, or cash holdings.
The Age Pension: A means-tested government payment available to eligible Australians.
Even if you’re not eligible for the Age Pension at retirement, you may qualify later as your super and assets reduce.
Plan Early - Don’t Wait Until 67
The qualifying age for the Age Pension is currently 67. However, retirement planning should begin earlier. In your 50s and 60s, key questions to consider include:
Will my super be enough to support my lifestyle?
Should I consider downsizing or freeing up equity?
When should I start drawing down from super?
Your eligibility for the Age Pension may evolve over time, especially as you begin to draw on your super and your assessable assets fall.
Age Pension: Eligibility Overview
To qualify for the Age Pension, you must:
Be at least 67 years of age.
Meet residency rules—generally at least 10 years in Australia, with 5 of those years being continuous.
Meet income and assets tests.
As of July 2025 (thresholds may change):
Singles: Asset limit of up to $704,500 (excluding the principal residence) for a part pension.
Couples (combined): Up to $1,059,000.
Income limits: $65,416 for singles and $99,954.40 combined for couples.
You can continue working part-time and still receive a pension, subject to income test thresholds. The Work Bonus allows up to $300 per fortnight of employment income to be excluded from the income test.
Note: Eligibility thresholds may change over time. Confirm current figures via Services Australia.
Use the Financial Information Service (FIS)
The Financial Information Service is a free and confidential government service operated by Services Australia. It helps people make informed financial decisions, particularly around superannuation, pensions, and income streams.
Importantly, FIS officers do not provide personal advice or product recommendations but can help you understand how Centrelink and financial structures work together.
To book: Call 132 300 and ask for the “Financial Information Service.”
Common Pension Mistakes to Avoid
Poor timing or misunderstanding of certain rules can affect your pension entitlement. Some common traps include:
Offset accounts: Even if linked to a home loan, the balance is counted as an assessable asset.
Unsecured personal loans: You cannot reduce your asset position by taking out a loan.
Proceeds from selling your home: Exempt from the assets test for up to 2 years (up to 3 years in some cases).
Transferring assets to a partner’s super: Strategies like this require careful planning. Mistimed or incorrectly executed transfers can impact eligibility. Always seek personal advice before implementing such transactions.
Can’t Get the Pension? Consider the Commonwealth Seniors Health Card (CSHC)
If your income or assets exceed pension thresholds, you may still qualify for the Commonwealth Seniors Health Card, which provides access to:
Discounted prescription medications
Bulk-billed GP visits (at the doctor's discretion)
Utility and transport concessions in some states
Income limits as of July 2025:
$99,025 for singles
$158,440 combined for couples
Importantly, there is no asset test for the CSHC.
Applying for the Age Pension
You can apply up to 13 weeks before your 67th birthday. Applying early can help avoid processing delays. Applications can be submitted online via MyGov, by phone, or by visiting a Services Australia service centre.
Support is available for those unfamiliar with online services. Digital coaching and help with setting up MyGov is offered by Services Australia.
Tip: Even if you’re unsure of eligibility, it may be worthwhile applying. You might qualify for a part pension, which could increase over time as assets decrease.
Retirement Planning Is About More Than Just Numbers
Retirement may span 20 to 30 years. It’s about lifestyle and peace of mind—not just stopping work. Planning should include:
Reviewing your superannuation balance and projected retirement income
Considering longevity risks and inflation
Evaluating Centrelink eligibility over time
Understanding your options for accessing capital (e.g. downsizing, equity release)
Reviewing insurance needs as retirement approaches
Know Your “Enough”
There’s no single magic number for retirement. Your “enough” depends on the lifestyle you want to maintain, your cost of living, and your personal goals.
Using online tools, calculators, and professional advice can help clarify your position and next steps.
Where to From Here?
Here are some practical actions to consider:
Speak to your super fund about income stream options.
Access free support via the Financial Information Service.
Consider professional advice from a licensed financial adviser.
If eligible, apply early for the Age Pension or Commonwealth Seniors Health Card.
Disclaimer: This article contains general information only and does not consider your specific financial objectives, needs, or circumstances. It is not financial product advice. You should seek personal advice from a licensed financial adviser before making financial decisions.
Eligibility rules, limits and entitlements can change. Information is current as of July 2025. Always check with Services Australia or a licensed adviser for the latest information.