Age Pension Calculator Australia 2026-27
Approaching retirement and want to know what you qualify for.
Estimate your Age Pension entitlement using the assets test and income test. See the impact of super, investments, and home ownership on your payment. Uses 2026-27 Services Australia rates and thresholds.
Estimates only. Contact Centrelink for exact entitlements. Rates indexed March & September.
Select the question that matches where you are right now.
Your result is an estimate using 2026-27 Services Australia rates and the two-test system. The payment is the lower of the asset test result and the income test result. Most retirees are caught by the asset test. Rates are indexed every March and September.
Services Australia runs both the asset test and income test and pays you whichever produces the lower pension. The binding test shown tells you which is limiting your payment.
Not a formal Centrelink determination. Supplements (Pension Supplement, Energy Supplement, Rent Assistance) are not included. Your actual entitlement may differ — contact Services Australia to confirm.
The full pension includes a Pension Supplement (~$78/fn single) and Energy Supplement (~$14/fn). These are paid automatically to all eligible pensioners and add ~$2,400/yr to the amounts shown.
The asset test drives most entitlement decisions. Understanding the taper rate — $78/yr pension lost per $1,000 of excess assets — is key to planning around the threshold.
For every $1,000 of assessable assets above the full pension threshold, your annual pension reduces by $78. On $100,000 excess assets, pension reduces by $7,800/yr. This creates a strong incentive to keep assets below the threshold.
Your principal home has no cap and is fully excluded from the asset test regardless of value. This is the single most valuable asset test exemption — a $3M home counts for $0 in the assessment.
The income test deems your financial assets to earn a set return regardless of actual performance. At 3.25% deeming, $300,000 in assets generates $9,750 deemed income — which may reduce your pension even if the assets are sitting in a low-interest account. Switching to growth assets doesn't increase deeming but may produce better returns than the deemed rate.
Improving your Age Pension entitlement is about legitimately reducing assessable assets or income below key thresholds. Several strategies are available.
Spending assessable cash on your principal home reduces assessable assets dollar-for-dollar. A $50,000 renovation reduces assessable assets by $50,000 and increases pension by ~$3,900/yr — a 7.8% return on the spend.
Funeral bonds up to $14,925 (2026-27) are exempt from the assets test. Prepaid funeral contracts are also generally exempt. A legitimate and simple way to reduce assessable assets.
You can gift up to $10,000 per year ($30,000 over 5 years) without it counting as a deprived asset. Amounts above these limits are deemed assets for 5 years under deprivation rules. Gifting to children must be genuine and documented.
Once you have a pension estimate, these are the key next steps to confirm and optimise your entitlement.
Contact Services Australia (Centrelink) to lodge a formal claim and get an official determination. The process takes 4–6 weeks and requires identity documents, asset valuations, and income details.
Services Australia offers a free Financial Information Service (FIS) — a financial education service that can explain how different asset and income scenarios affect your pension. Not financial advice, but a useful planning tool.
A retirement income specialist can model the interaction between super drawdown strategy, asset allocation, the pension means test, and aged care planning. The right strategy can add tens of thousands in lifetime pension income.
Assets test and income test — the two-test system
Two-test system
Services Australia calculates your pension under both the assets test and income test, and pays the lower result. Most pensioners are caught by the assets test. Some with high deeming income but lower actual assets may be caught by the income test.
Assets test taper rate
For every $1,000 of assessable assets above the full pension threshold, your pension reduces by $3.00/fortnight ($78/year). The pension cuts out entirely at the assets test upper limit (~$697,000 for single homeowners in 2025).
Full and cutoff thresholds for the asset test
| Situation | Full pension below | No pension above |
|---|---|---|
| Single homeowner | $333,000 | ~$733,500 |
| Single non-homeowner | $600,000 | ~$1,000,500 |
| Couple homeowner | $499,000 | ~$1,102,500 |
| Couple non-homeowner | $766,000 | ~$1,369,500 |
How investment income is deemed for pension purposes
The income test looks at your actual income PLUS deemed returns on financial assets. Services Australia deems: first $66,800 (single) at 1.25%, above at 3.25% (2026-27 rates). Even if your actual return is 0%, you are deemed to earn 3.25% on most financial assets. Super pension drawdowns above the minimum may also count as income. The income test free area is $226/fortnight (single), $396 (couple combined). Pension reduces by 50c for each dollar above this.
❓ Frequently askedFrequently asked questions
Does my principal home count in the Age Pension assets test?
No — your primary home (regardless of value) is exempt from the assets test. This creates a powerful incentive for pre-retirement home ownership. A $3M home plus $200,000 in super could still qualify for full pension as the home equity is completely excluded.
When does superannuation count in the Age Pension asset test?
Your super is included in the assets test once you or your partner reaches Age Pension age (67). Super in accumulation phase before reaching that age is not assessable for Age Pension purposes. Once you start a pension account (retirement income stream), the balance counts.
Where these figures come from
Superannuation figures on this page are drawn from the Australian Taxation Office (ATO — super rules and thresholds) and the Australian Prudential Regulation Authority (APRA — fund oversight and performance data).
- Super Guarantee (SG) rate — ATO — Super guarantee percentage.
- Concessional & non-concessional caps — ATO — Key superannuation rates and thresholds.
- Preservation age & condition of release — ATO — When you can access your super.
- Super fund performance & heatmap — APRA — Superannuation.
- Super consumer guidance — ASIC MoneySmart — Super.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
How to legitimately improve your Age Pension entitlement
Reduce assessable assets
Spending on exempt items — home improvements, prepaid funeral bonds (up to $14,925), and gifting (up to $10,000/yr, $30,000 over 5 years) — can reduce assessable assets and increase pension. However, deprivation rules apply: gifts above the limit are still counted for 5 years.
Transition to pension strategies
The transition between accumulation super and pension mode matters. Super in accumulation phase (before pension age) is not counted in the asset test. However, once you draw a pension from super, that balance becomes assessable. Timing super drawdowns carefully can affect pension eligibility.
Home ownership and the pension
The family home is completely exempt from the assets test regardless of its value. A $3M Sydney home plus $200,000 in other assets could still qualify for full pension. This creates a strong incentive to own a home entering retirement — or to invest in the home (renovations) rather than hold financial assets.
Speak with a financial adviser
A fee-for-service financial adviser specialising in aged care and retirement income can model the interaction between super, pension, and the Age Pension means test. The right strategy can mean tens of thousands of dollars per year in additional pension entitlements.