How much you can own in assets and earn in wages and investment income, while still qualifying for the pension, changes today.
The changes are part of the latest round of indexation adjustments to keep payments aligned with inflation.
Here are the essential details.
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How much can you own in retirement while still getting the pension?
The value of assets you can own in retirement while still qualifying for at least a part-pension increase today.
Assessable assets include your superannuation, ASX shares, international shares, bonds, managed funds, rental properties, and cash.
Excluding your home, singles can now own $722,000 in assets, up from $714,500, and still be eligible for at least a part-payment.
The limit for a full pension remains $321,500.
Single non-homeowners are now allowed to own $980,000 in assets, up from $972,500, and still be eligible for a part-pension.
The limit for a full pension is $579,500.
Couple homeowners can now own $1,085,000 worth of assets, up from $1,074,000, and still be eligible for a part-pension.
The limit for a full pension remains $481,500.
Couple non-homeowners can own $1,343,000 in assets, up from $1,332,000, and still be eligible for a part-payment.
The limit for a full pension is $739,500.
How much can you earn?
From today, singles can earn up to $2,619.80 per fortnight, up from $2,575.40 per fortnight, and still qualify for at least a part-pension.
Couples can earn up to $4,000.80 per fortnight, up from $3,934 per fortnight, and still get a pension benefit.
In order to receive the full pension, singles cannot earn more than $218 per fortnight, and couples can’t earn more than $380 per fortnight.
Part of your assessable earnings is investment income.
From today, the Federal Government will also implement a second increase to pensioner deeming rates.
Deeming is used to estimate a pensioner’s annual investment income.
Deeming applies to all assets except investment properties (pensioners must report their actual rental income each year).
The lower deeming rate changes today from 0.75% to 1.25% for assets worth less than $64,200 for singles and $106,200 for couples.
The upper deeming rate lifts from 2.75% to 3.25% for assets worth more than these amounts.
How much is the pension?
Singles on the full age pension will receive an extra $22.20Â per fortnight from today.
Couples will receive an extra $16.70 per person, per fortnight.
This means the full pension payment, with both supplements included, lifts to $1,200.90 per fortnight for singles.
Couples will receive $905.20 per partner, per fortnight.
How much does retirement cost per year?
According to Australia’s benchmark Retirement Standard, a modest retirement costs $35,503 per year for single homeowners and $51,299 for couple homeowners.
A comfortable retirement costs $54,840 per year for single homeowners and $77,375 per year for couple homeowners.
Retirement costs more for renters because their housing costs are higher.
A modest retirement costs $50,055 per year for single renters and $67,639 per year for couples who rent their homes.