Retiring at 67? Your Step-by-Step Age Pension Guide for 2026
Everything you need to know about claiming the Age Pension at 67 — eligibility, income and asset tests, how much you will get, and how to apply.
Age Pension Eligibility in 2026
The qualifying age for Age Pension is 67 for anyone born on or after 1 January 1957. You must be an Australian resident and have lived in Australia for at least 10 years in total, with at least 5 of those years being continuous. If you have lived or worked in a country that has an International Social Security Agreement with Australia (such as the UK, USA, Canada, or New Zealand), periods in those countries may count toward your residency requirement. You can apply up to 13 weeks before your 67th birthday, and it is strongly recommended to do so — processing times average 6 to 12 weeks. If you are still working at 67, you can claim the pension and benefit from the Work Bonus (which allows you to earn extra income without reducing your pension). There is no requirement to retire in order to receive Age Pension.
How Much Age Pension Will You Get?
The maximum Age Pension rate for a single person is $1,144.40 per fortnight ($29,754 per year), including the Pension Supplement of $81.60 and Energy Supplement of $14.10. For a couple combined, the maximum is $1,725.20 per fortnight ($44,855 per year). These rates are indexed twice a year in March and September to keep pace with cost of living increases. If you own your own home, the asset test thresholds are higher. You also receive a Pensioner Concession Card (PCC) automatically, which provides PBS medicine at $7.70 per script, bulk-billed GPs at most practices, and state-based concessions on utilities, council rates, water, and public transport. Even a part-rate pension comes with the PCC, making it extremely valuable.
The Income Test Explained
The income test reduces your pension once your income exceeds the threshold. For a single homeowner, you can earn up to $204 per fortnight ($5,304 per year) from all sources before your pension starts reducing at 50 cents per dollar. The pension cuts out entirely at about $2,492.60 per fortnight. For couples, the combined income threshold is $360 per fortnight. Income includes wages, salary, self-employment income, superannuation income streams, rental income, deemed income from financial assets, and foreign pensions. Superannuation is treated differently depending on whether it is in accumulation phase (subject to deeming) or paying an account-based pension (generally assessed as income). Employment income benefits from the Work Bonus, which excludes the first $300 per fortnight from the income test — more on this in a later section.
The Assets Test Explained
The assets test sets limits on what you can own. For a single homeowner, the lower threshold is $314,000 — below this, you get the full pension. Above this, your pension reduces by $3.00 per fortnight for every $1,000 in assets over the threshold. The pension cuts out at approximately $695,500 in assets. For single non-homeowners, the lower threshold is $566,000 and the cut-out is $947,500. For homeowner couples, the combined lower threshold is $470,000 and the cut-out is $1,045,500. Your family home is exempt from the assets test regardless of its value. Assets include superannuation (if you are over Age Pension age), cars, boats, caravan, furniture, shares, managed funds, investment properties (at market value minus any mortgage), and personal effects. Funeral bonds up to $15,000 are exempt.
What to Do With Your Super Before Claiming
Once you reach 67, any superannuation you hold is counted as an asset and deemed for income test purposes, regardless of whether you are drawing from it. This is important: there is no advantage in leaving money sitting in super once you reach Age Pension age. Consider your options carefully. If your super balance is below the asset test lower threshold and you own your home, you will likely get the full pension. If your super pushes you over, you might consider using some super to pay off your mortgage (your home is exempt) or prepay funeral expenses. The Pension Loan Scheme is also available — it allows you to borrow against the equity in your home to supplement your pension income at an interest rate of 3.95% per annum. Speak with a financial adviser, as Centrelink's Financial Information Service offers free appointments.
How to Apply for Age Pension
The application process has several steps. First, set up a myGov account and link it to Centrelink if you have not already. Start an online claim through the Make a Claim section. You will need: proof of identity (passport, birth certificate, drivers licence), bank account details, details of all income sources (payslips, super statements, investment accounts), a property valuation for any investment properties, and details of any overseas pensions. If you own your home, you will need your rates notice as proof. The online claim takes about 45 to 60 minutes to complete. After submitting, you may be asked to attend an appointment at a Centrelink office. If your claim is complex (involves overseas pensions or trusts), processing can take up to 12 weeks. Your start date is generally the day you submit a completed claim — another reason to apply early.
Commonwealth Seniors Health Card Alternative
If your income or assets are too high for the Age Pension, you may still qualify for the Commonwealth Seniors Health Card (CSHC). This card is available to self-funded retirees who have reached Age Pension age and have an adjusted taxable income under $152,000 (single) or $244,000 (combined for couples). The CSHC is not asset tested. It provides PBS medicines at the concessional rate of $7.70 per script, bulk billing incentives for GPs, and state-based concessions that vary but typically include discounts on council rates, energy bills, and public transport. Some states treat CSHC holders similarly to pensioners for concession purposes, while others offer reduced benefits. The CSHC also qualifies you for the Energy Supplement of $14.10 per fortnight. Apply online through myGov.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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