Age Pension Explained: Everything You Need to Know in 2026

The Age Pension is Australia's government-funded retirement income payment, managed by Services Australia (Centrelink). It provides a regular fortnightly income to eligible Australians who have reached pension age and meet income and assets tests. As of March 2026, the maximum Age Pension is $1,144.40 per fortnight for a single person ($29,754 per year), including the Pension Supplement of $81.60 and Energy Supplement of $14.10 per fortnight.

For couples, the combined maximum is $1,725.20 per fortnight ($44,855 per year) — or $862.60 per person. Rates are indexed every March and September to keep pace with inflation. Even a small part-pension is valuable because all Age Pension recipients (including part-pensioners) receive a Pensioner Concession Card, which provides access to cheaper PBS medicines at $7.70 per script and state-based concessions worth hundreds to thousands of dollars per year. Use our Age Pension Calculator to estimate your entitlement.

To receive the Age Pension you must: be aged 67 or over (for anyone born on or after 1 January 1957); be an Australian resident and have lived in Australia for at least 10 years, with at least 5 years being continuous; and pass both the income test and the assets test. You can apply up to 13 weeks before your 67th birthday.

You don't have to stop working to receive the Age Pension — many Australians work part-time and receive a part-rate pension. If you've lived or worked in a country that Australia has a social security agreement with (UK, USA, New Zealand, Canada, Italy, Germany, and many others), time spent in that country may count toward your Australian residency requirement. The income and assets tests determine whether you receive the full pension, a part-pension, or no pension at all.

The income test reduces your pension once your income (from all sources) exceeds $204/fortnight for singles ($5,304/year) or $360/fortnight combined for couples. For every dollar of income above the threshold, your pension reduces by 50 cents. The pension cuts out entirely at around $2,436/fortnight for singles or $3,726/fortnight combined for couples.

Income includes wages (with a $300/fortnight Work Bonus concession for employment income), superannuation income streams, rental income, and 'deemed income' from financial investments (the government assumes a standard return on your investments regardless of what they actually earn — check current deeming rates here).

The assets test reduces your pension when your assets exceed $314,000 (single homeowner) or $566,000 (single non-homeowner). Above these thresholds, the pension reduces by $3 per fortnight for every $1,000 in assets. Your family home is exempt, regardless of value. Superannuation funds are counted as assets once you reach Age Pension age.

Once you reach Age Pension age (67), any superannuation you hold is treated as an asset and assessed under both the assets test (at its current balance) and the income test (under deeming — Centrelink assumes a standard rate of return rather than your actual fund earnings).

If your super is still in accumulation phase when you turn 67, it's assessed as an asset under the assets test from your pension start date. If you've converted super into an account-based pension (income stream), it's assessed under deeming if you started the income stream after 1 January 2015.

Common strategies to manage the interaction include: converting some super to an income stream and drawing it down to reduce the assets test exposure; making additional home improvements or paying down a mortgage (converting a counted asset into an exempt home); or prepaying funeral expenses (funeral bonds up to $15,000 are exempt). Speak with a licensed financial adviser before making major decisions — the Age Pension rules have many nuances.

What is the Age Pension qualifying age in 2026? 67 for anyone born on or after 1 January 1957. This was incrementally increased from 65 between 2017 and 2023.

Can I receive the Age Pension while still working? Yes. The Work Bonus allows you to earn up to $300 per fortnight from employment income without it affecting your pension. Additional earnings above $300/fortnight are assessed under the income test at 50 cents per dollar reduction.

What's the maximum asset I can have and still get a full pension? For a single homeowner: $314,000. For a single non-homeowner: $566,000. For a couple (homeowner): $470,000 combined. Assets above these thresholds reduce your pension at $3/fortnight per $1,000.

Does the Age Pension affect my tax return? Age Pension payments are taxable income, but the Seniors and Pensioners Tax Offset (SAPTO) means most pensioners pay little or no income tax. The SAPTO is worth up to $2,230 for singles and $1,602 each for couples.

How do I apply for the Age Pension? Online through myGov linked to Centrelink, or in person at a Services Australia service centre. Apply up to 13 weeks before you turn 67. You'll need: proof of identity, bank details, details of all income and investments, super fund statements, and details of any property you own. Processing takes 6–12 weeks on average.