{"id":724114,"date":"2026-08-02T08:28:08","date_gmt":"2026-08-02T08:28:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/724114\/"},"modified":"2026-08-02T08:28:08","modified_gmt":"2026-08-02T08:28:08","slug":"7-things-aussies-at-age-59-need-to-know-about-the-age-pension-income-test-before-they-retire","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/724114\/","title":{"rendered":"7 things Aussies at age 59 need to know about the Age Pension income test before they retire"},"content":{"rendered":"

At age 59, Australians are just one year from being able to retire (if they stop work) and eight years from receiving the Age Pension payment (if eligible).<\/p>\n

The Age Pension is a fortnightly payment, paid by Centrelink, up to a maximum of $1,200.90 per fortnight for singles and $1,810.40 for couples combined.\u00a0<\/p>\n

These figures include the maximum basic rate, the maximum pension supplement, and the energy supplement.<\/p>\n

But not everyone will get it.\u00a0<\/p>\n

Eligibility for the Age Pension is heavily dependent on your income level and the assets you own.<\/p>\n

The problem is that many Australians miss out on payments because they understand the value of their assets but don’t really understand how\u00a0the income test works.<\/p>\n

Overlooking your income limits could quickly reduce your Age Pension payment, or worse, eliminate it entirely.<\/p>\n

Here are the seven most important things Australians at age 59 need to know about the Age Pension income test before they reach retirement<\/a> age.<\/p>\n

\"An<\/p>\n

Image source: Getty Images<\/p>\n

1. Eligibility requirements are strict<\/p>\n

To be eligible to receive the Age Pension, you need to be aged 67 years or older. You also need to be an Australian resident who has lived in Australia for at least 10 years, with at least five of those years in a continuous period.<\/p>\n

2. Age Pension limits and rules vary depending on if you’re single or a couple living together<\/p>\n

To receive the full Age Pension, single Australians can earn up to $226 per fortnight. Meanwhile, couples can earn up to $396 per fortnight.<\/p>\n

3. You can earn more if you still have dependent children<\/p>\n

Individuals can earn up to an extra $24.60 per fortnight for each dependent child without reducing their pension. Couples living together and both getting a pension can each earn an extra $12.30 per fortnight for each dependent child.<\/p>\n

4. Your income includes all income generated, not just wages<\/p>\n

The income test assesses all of your income pooled from all sources. That includes anything from superannuation<\/a> contributions, investment income, part-time wages, bonuses, passive income<\/a> or commission payments.\u00a0<\/p>\n

5. Age Pension deeming rules apply<\/p>\n

To determine how much income you receive from your assets, Centrelink uses a deeming rule. Deeming assumes your financial assets earn a fixed, set rate of income, regardless of what they actually earn. This assumed income is then added to your other income to determine your Age Pension rate. For single Australians, the first $66,800 of their financial assets has a deemed rate of 1.25%. Everything over that is deemed to earn 3.25% interest. Couples will have a 1.25% deeming rate on their first $110,600 of combined financial assets (this includes superannuation). Anything over $110,600 is deemed to earn 3.25%.<\/p>\n

6. You can go over the limits and still get a part-Age Pension payment<\/p>\n

Single Australians can earn up to $2,627.80 per fortnight, and couples (living together) can earn up to $4,016.80 per fortnight combined and still qualify for at least a part-Age Pension. Couples living apart due to ill health can earn a little more, at up to $5,199.60 combined. But if you earn over the income limit and below these cut-off points, your income is assessed on a sliding scale. For a single person, your Age Pension will reduce by 40 cents for each dollar over $226 and for couples it will reduce by 20 cents for each dollar over $396.<\/p>\n

7. You’re subject to the “lower rule of two”<\/p>\n

Centrelink assesses you under both an income and an asset test. It then applies whichever gives you the lowest rate of payment for your individual circumstances, which it calls a “lowest rule of two”.<\/p>\n","protected":false},"excerpt":{"rendered":"At age 59, Australians are just one year from being able to retire (if they stop work) and…\n","protected":false},"author":2,"featured_media":724115,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4233,4176,4174,4175,56,54,55],"class_list":["post-724114","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-editors-choice","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/724114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=724114"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/724114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/724115"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=724114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=724114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=724114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}