For most Australians, retirement isn’t funded by super or the Age Pension — it’s both, working together. Understanding how they interact is one of the highest-value things you can do before you retire, because small changes can meaningfully lift your total income.
What the Age Pension pays (from 20 September 2026)
| Single | Couple (combined) | |
|---|---|---|
| Maximum rate (incl. supplements) | ~$1,237.70 / fortnight | ~$1,866.00 / fortnight |
| Approx. annual | ~$32,180 | ~$48,500 |
Rates from 20 September 2026. Verify current figures at Services Australia.
You have to pass two tests
Centrelink applies both an assets test and an income test, and pays you the lower of the two results. Your super counts in both once you reach Age Pension age.
Assets test (full pension thresholds, Sep 2026)
| Home owner | Non-home owner | |
|---|---|---|
| Single (full pension up to) | $333,000 | $600,000 |
| Couple (full pension up to) | $499,000 | $766,000 |
| Single (pension cuts out at) | $745,750 | $1,012,750 |
| Couple (pension cuts out at) | $1,121,000 | $1,388,000 |
Above the full-pension threshold, your pension reduces by $3 a fortnight for every $1,000 of assets over the limit — the “taper”.
Income test (Sep 2026)
You can earn up to $226 a fortnight (single) or $396 (couple, combined) and still get the full pension; above that it reduces by 50c per dollar. Financial assets (including most account-based pensions) are deemed to earn a set rate rather than counting your actual earnings.
The taper trap
For part-pensioners near the assets cut-off, every extra $1,000 in assets can cost $78 a year in pension — an effective “return” of about 7.8% lost. That’s why the interaction between super, other assets and the Age Pension needs to be planned deliberately, not left to chance.
Working out your likely entitlement, and how to structure your super and drawdowns around it, is a core part of a complimentary Donmont retirement review.
Frequently asked questions
Does my super count towards the Age Pension?
Yes. Once you reach Age Pension age your super counts under both the assets test and the income test (via deeming), whether it's in accumulation or an account-based pension.
Can I get the Age Pension and have super?
Yes - most retirees receive a part or full Age Pension alongside their super. Whether you qualify, and for how much, depends on the assets and income tests.
Why can drawing down super increase my Age Pension?
Because the assets test reduces your pension by $3 a fortnight per $1,000 of assets above the threshold. As your assessable assets fall, your Age Pension can rise to partly offset the drawdown.
Not sure which fund is right for you?
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