In this guide
A common question for people nearing or in retirement is ‘How much money can I have before it affects my pension?’. The answer lies in the total value of your savings and other assets and your income from various sources.
This article details the rules of the Age Pension assets test (often mistakenly called the ‘asset test’), which is one half of the means test used by Centrelink to determine how much Age Pension you could be eligible for.
You must also pass the Age Pension income test, have reached your eligibility age and satisfy Australian residency rules.
Statistics consistently indicate that more retirees pass the Age Pension assets test than the income test. According to the Centre of Excellence in Population Ageing Research (CEPAR), only one third of Australians receiving part pensions have too much assessable wealth (assets) to be eligible for the full pension. The other two thirds are ineligible to receive the full pension because they earn too much income. CEPAR research also reveals that 54% of full pensioners have assessable assets worth below $50,000.
How does the Age Pension assets test work?
The market value of any assets you or your partner own will be assessed by Centrelink to determine your potential eligibility for the Age Pension.
Important: Your residential home is not included in the Age Pension assets test.
According to research by the ANU Centre for Social Research and Methods, 73% of households with at least one Age Pensioner are homeowners and 17.6% of these households have a home worth more than $1 million.
Any debts owing on assets other than your home is subtracted from their market value for the purposes of your assets test assessment. For example, if you have an investment property valued at $600,000 and you still owe $200,000 to the bank for the loan you obtained to buy it, the value of your investment property asset will be assessed at $400,000.
To be eligible for either a full or part Age Pension, there are limits on the value of the assets you (and your partner combined) can own. The limits depend on whether you own your own home, as well as your living arrangements (including if you have a partner and whether they are age-eligible for the pension or not). The asset limits are higher for non-homeowners in recognition of the higher cost of housing for pensioners who rent their home.
The current asset limits are itemised in the tables below. To be eligible for a full Age Pension the value of your assets must be below the following thresholds.
Age Pension asset limits
Assets limits for a full Age Pension
| Situation | Latest limit | Previous limit | Increase | |
|---|---|---|---|---|
| Single | Homeowner | $314,000 | $301,750 | $12,250 |
| Single | Non-homeowner | $566,000 | $543,750 | $22,250 |
| Couple (combined) | Homeowner | $470,000 | $451,500 | $18,500 |
| Couple (combined) | Non-homeowner | $722,000 | $693,500 | $28,500 |
- Latest limits apply 1 July 2024 to 30 June 2025
- Previous limits apply 1 July 2023 to 30 June 2024
Source: Services Australia
Need to know
You also need to pass the income test and age and residency requirements.
The asset-free thresholds for full Age Pension are the same for couples living together and those separated by illness.
If the value of our assets is above the thresholds in the above table, you may still be eligible for a part Age Pension. The table below shows the maximum values of assets you can hold to still be eligible to receive any part-pension payment.
The amount of Age Pension you are eligible for reduces by $3 per fortnight per $1,000 of assets until it cuts off completely when the value of your assets exceeds the figures below.
Assets limits for a part Age Pension (residents)
| Situation | Latest limit | Previous limit | Increase | |
|---|---|---|---|---|
| Single | Homeowner | $695,500 | $686,250 | $9,250 |
| Single | Non-homeowner | $947,500 | $938,250 | $9,250 |
| Couple (combined) | Homeowner | $1,045,500 | $1,031,000 | $14,500 |
| Couple (combined) | Non-homeowner | $1,297,500 | $1,283,000 | $14,500 |
| Couple (illness-separated, combined) | Homeowner | $1,233,500 | $1,214,500 | $18,500 |
| Couple (illness-separated, combined) | Non-homeowner | $1,485,000 | $1,466,500 | $18,500 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
To illustrate how the Age Pension rate decreases based on the value of assets, below are some examples of the current Age Pension payments that Australians should be eligible for at a range of different asset levels, provided they also meet the other eligibility requirements (age, passing the income test and Australian residency).
Note: The examples include the Pension supplement and Energy supplement.
Click each example name to view.
Example 1: Single homeowner
| Assets value | Age Pension payment (per fortnight) | Age Pension payment (per year) |
|---|---|---|
| $314,000 | $1,144.40 | $29,754 |
| $325,000 | $1,111.40 | $28,896 |
| $350,000 | $1,036.40 | $26,946 |
| $375,000 | $961.40 | $24,996 |
| $400,000 | $886.40 | $23,046 |
| $425,000 | $811.40 | $21,096 |
| $450,000 | $736.40 | $19,146 |
| $475,000 | $661.40 | $17,196 |
| $500,000 | $586.40 | $15,246 |
| $525,000 | $511.40 | $13,296 |
| $550,000 | $436.40 | $11,346 |
| $575,000 | $361.40 | $9,396 |
| $600,000 | $286.40 | $7,446 |
| $625,000 | $211.40 | $5,496 |
| $650,000 | $136.40 | $3,546 |
| $675,000 | $61.40 | $1,596 |
Example 2: Single non-homeowner
| Assets value | Age Pension payment (per fortnight) | Age Pension payment (per year) |
|---|---|---|
| $566,000 | $1,144.40 | $29,754 |
| $550,000 | $1,192.40 | $31,002 |
| $575,000 | $1,117.40 | $29,052 |
| $600,000 | $1,042.40 | $27,102 |
| $625,000 | $967.40 | $25,152 |
| $650,000 | $892.40 | $23,202 |
| $675,000 | $817.40 | $21,252 |
| $700,000 | $742.40 | $19,302 |
| $725,000 | $667.40 | $17,352 |
| $750,000 | $592.40 | $15,402 |
| $775,000 | $517.40 | $13,452 |
| $800,000 | $442.40 | $11,502 |
| $825,000 | $367.40 | $9,552 |
| $850,000 | $292.40 | $7,602 |
| $875,000 | $217.40 | $5,652 |
| $900,000 | $142.40 | $3,702 |
| $925,000 | $67.40 | $1,752 |
Example 3: Couple homeowner (combined)
| Assets value | Age Pension payment (per fortnight) | Age Pension payment (per year) |
|---|---|---|
| $470,000 | $1,725.20 | $44,855 |
| $500,000 | $1,635.20 | $42,515 |
| $525,000 | $1,560.20 | $40,565 |
| $550,000 | $1,485.20 | $38,615 |
| $575,000 | $1,410.20 | $36,665 |
| $600,000 | $1,335.20 | $34,715 |
| $625,000 | $1,260.20 | $32,765 |
| $650,000 | $1,185.20 | $30,815 |
| $675,000 | $1,110.20 | $28,865 |
| $700,000 | $1,035.20 | $26,915 |
| $725,000 | $960.20 | $24,965 |
| $750,000 | $885.20 | $23,015 |
| $775,000 | $810.20 | $21,065 |
| $800,000 | $735.20 | $19,115 |
| $825,000 | $660.20 | $17,165 |
| $850,000 | $585.20 | $15,215 |
| $875,000 | $510.20 | $13,265 |
| $900,000 | $435.20 | $11,315 |
| $925,000 | $360.20 | $9,365 |
| $950,000 | $285.20 | $7,415 |
| $975,000 | $210.20 | $5,465 |
| $1,000,000 | $135.20 | $3,515 |
| $1,025,000 | $60.20 | $1,565 |
Example 4: Couple non-homeowner (combined)
| Assets value | Age Pension payment (per fortnight) | Age Pension payment (per year) |
|---|---|---|
| $722,000 | $1,725.20 | $44,855 |
| $700,000 | $1,791.20 | $46,571 |
| $725,000 | $1,716.20 | $44,621 |
| $750,000 | $1,641.20 | $42,671 |
| $775,000 | $1,566.20 | $40,721 |
| $800,000 | $1,491.20 | $38,771 |
| $825,000 | $1,416.20 | $36,821 |
| $850,000 | $1,341.20 | $34,871 |
| $875,000 | $1,266.20 | $32,921 |
| $900,000 | $1,191.20 | $30,971 |
| $925,000 | $1,116.20 | $29,021 |
| $950,000 | $1,041.20 | $27,071 |
| $975,000 | $966.20 | $25,121 |
| $1,000,000 | $891.20 | $23,171 |
| $1,025,000 | $816.20 | $21,221 |
| $1,050,000 | $741.20 | $19,271 |
| $1,075,000 | $666.20 | $17,321 |
| $1,100,000 | $591.20 | $15,371 |
| $1,125,000 | $516.20 | $13,421 |
| $1,150,000 | $441.20 | $11,471 |
| $1,175,000 | $366.20 | $9,521 |
| $1,200,000 | $291.20 | $7,571 |
| $1,225,000 | $216.20 | $5,621 |
| $1,250,000 | $141.20 | $3,671 |
| $1,275,000 | $66.20 | $1,721 |
Assets limits for a part Age Pension (non-residents)
The assets limits for non-residents are slightly lower and summarised in the table below.
Learn more about Age Pension residency requirements.
| Situation | Latest limit | Previous limit | Increase | |
|---|---|---|---|---|
| Single | Homeowner | $672,750 | $663,750 | $9,000 |
| Single | Non-homeowner | $924,750 | $915,750 | $9,000 |
| Couple (combined) | Homeowner | $1,012,500 | $998,500 | $14,000 |
| Couple (combined) | Non-homeowner | $1,264,500 | $1,250,500 | $14,000 |
| Couple (illness-separated, combined) | Homeowner | $1,187,500 | $1,169,500 | $18,000 |
| Couple (illness-separated, combined) | Non-homeowner | $1,439,500 | $1,421,500 | $18,000 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
Note: You also need to pass the income test and age and residency requirements.
The Age Pension assets limits are adjusted three times a year based on movements in the consumer price index (CPI). The thresholds for the full Age Pension change in July, while thresholds for the part Age Pension change in March and September.
Discover the latest Age Pension rates here.
Try our Age Pension calculator to get an indication of your potential Age Pension entitlements.
Assets limits for a transitional part Age Pension (residents)
Some Age Pensioners in Australia are on transitional pensions. Transitional pensions rates are paid to people who would otherwise be getting a lower payment when changes to the income test were introduced in 2009. From 20 March 2020, transitional rate pensions cancel when your assets are more than the limit for your situation.
The table below shows the asset value cut-off points for receiving a transitional pension.
| Situation | Latest limit | Previous limit | Increase | |
|---|---|---|---|---|
| Single | Homeowner | $627,750 | $621,750 | $6,000 |
| Single | Non-homeowner | $879,750 | $873,750 | $6,000 |
| Couple (combined) | Homeowner | $976,500 | $966,500 | $10,000 |
| Couple (combined) | Non-homeowner | $1,228,500 | $1,218,500 | $10,000 |
| Couple (illness-separated, combined) | Homeowner | $1,097,500 | $1,085,500 | $12,000 |
| Couple (illness-separated, combined) | Non-homeowner | $1,349,500 | $1,337,500 | $12,000 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
Note: You also need to pass the income test and age and residency requirements.
Assets limits for a transitional part Age Pension (non-residents)
| Situation | Latest limit | Previous limit | Increase | |
|---|---|---|---|---|
| Single | Homeowner | $597,500 | $592,000 | $5,500 |
| Single | Non-homeowner | $849,500 | $844,000 | $5,500 |
| Couple (combined) | Homeowner | $944,000 | $934,500 | $9,500 |
| Couple (combined) | Non-homeowner | $1,196,00 | $1,186,500 | $9,500 |
| Couple (illness-separated, combined) | Homeowner | $1,037,000 | $1,026,000 | $11,000 |
| Couple (illness-separated, combined) | Non-homeowner | $1,289,000 | $1,278,000 | $11,000 |
- Latest limits apply 20 September 2024 to 19 March 2025
- Previous limits apply 1 July 2024 to 19 September 2024
Source: Services Australia
Note: You also need to pass the income test and age and residency requirements.
