Age Pension Eligibility

Age Pension Eligibility

The Age Pension in Australia is a vital source of income for many older Australians. It’s designed to provide financial support in retirement and is administered by Services Australia through Centrelink. But knowing whether you’re eligible – and how much you can get – isn’t always straightforward.

There are a few key tests that determine your eligibility: your age, your residency status, your income, and your assets.

Who Can Get the Age Pension?

To qualify for the Age Pension, you must meet several basic criteria. The most obvious is age – hence the name! But age alone isn’t enough. Let’s break it down:

• Age: As of 1 July 2025, the qualifying age for Age Pension is 67 years.
• Residency: You must be an Australian resident and have lived in Australia for at least 10 years, with at least 5 of those years being continuous.
• Income and Assets: You’ll need to pass the income and assets tests to determine how much pension you can receive.

Meeting the Age Requirement

The age requirement has been gradually increasing. If you were born on or after 1 January 1957, your Age Pension qualifying age is 67. For those born before that, the age may be slightly lower depending on your date of birth. It’s best to check the current threshold to confirm when you become eligible.

Residency Rules

To qualify for the Age Pension, you must be an Australian resident and physically present in the country on the day you lodge your claim. A “resident” means you are living in Australia on a permanent basis and are either a citizen, a permanent visa holder, or a special category visa holder.

The basic residency requirement is that you’ve lived in Australia for at least 10 years, with five of those years being continuous. There are some exceptions for refugees and people covered under international social security agreements.

The Income Test

The Age Pension is subject to an income test to ensure it’s targeted at people who need it. Centrelink will look at all sources of income – including superannuation, rental income, wages, and financial investments – to calculate how much pension you should receive.

There is an “income free area” – the amount you can earn before your pension starts reducing. As of 2025, the income free area is:

• Single: $204 per fortnight
• Couple (combined): $360 per fortnight

For every dollar you earn over the threshold, your pension reduces by 50 cents per dollar. If your income exceeds a certain limit, you may no longer be eligible for the Age Pension at all.

The Assets Test

The assets test works similarly – if you have too many assets, your pension could be reduced or denied altogether. Assets include things like property (other than your primary residence), vehicles, business assets, financial investments, and personal belongings.

The assets test threshold as of 2025 is:

• Single homeowner: $301,750
• Single non-homeowner: $543,750
• Couple homeowner: $451,500
• Couple non-homeowner: $693,500

For every $1,000 over the limit, your pension reduces by $3 per fortnight.

Owning Your Home

Your principal home is exempt from the assets test. However, owning your home affects which threshold applies to you. If you downsize and release equity, the proceeds may count towards the income and assets tests. This is something to plan carefully with financial advice.

Applying for the Age Pension

You can apply for the Age Pension through Centrelink up to 13 weeks before you become eligible. The process involves submitting proof of identity, residency, income, and assets. You can apply online through myGov, over the phone, or in person at a Centrelink office.

Applications can take several weeks to process, so it’s a good idea to get everything ready in advance. Missing documentation or errors can delay your claim.

Waiting Periods and Portability

Even if you meet the criteria, some people may have to wait before payments begin. This is particularly the case if you’ve recently arrived in Australia or returned after living overseas.

In certain situations, the Age Pension is portable, meaning you can receive it while living overseas. However, the amount you get and how long it’s paid depends on how long you’ve lived in Australia during your working life.

Partnered Couples and the Age Pension

If you’re part of a couple, both your incomes and assets are assessed together. Even if only one of you is of pension age, both partners’ financial details are used in the assessment. You may receive a part pension until both of you meet the eligibility criteria.

Other Pension Supplements

In addition to the base Age Pension, eligible recipients may receive supplementary payments such as:

• Energy Supplement
• Pension Supplement
• Rent Assistance (if applicable)

These extra payments can help cover the cost of utilities, pharmaceuticals, and housing.

Special Rules for Some Groups

There are special rules and considerations for certain groups, such as Indigenous Australians, veterans, carers, and people with disabilities. These may affect your eligibility or the amount you receive. If you’re in one of these categories, it’s worth checking with Centrelink or an aged care advocate to explore your options.

Seek Support and Advice

Understanding your eligibility for the Age Pension can be complex, especially if you have mixed income sources, overseas pensions, or complex financial arrangements. Speaking with a financial advisor, aged care advocate, or Centrelink financial information service officer can be incredibly helpful.

Helpful Resources

• Services Australia – Age Pension
• Moneysmart – Government Financial Advice
• My Aged Care – Services and Supports
• Centrelink – Age Pension Info

In Summary

Qualifying for the Age Pension is an important part of retirement planning for many Australians. Knowing the rules around age, residency, income, and assets can help you make smarter financial choices and ensure you receive the entitlements you’ve worked for.

Here at Silver Lifestyle, we’re committed to helping older Australians navigate retirement with confidence. If you’re still unsure where you stand, explore more of our resources, or speak with a professional to get tailored advice.