Our Lifetime Pension is designed to work with the Age Pension to give you more security in retirement. For some people, that means higher Age Pension payments or even being able to start getting the pension.

How Lifetime Pension and the Age Pension work together

Age Pension assets test and income test

When Centrelink considers your eligibility for the Age Pension, they check your super income streams and super balance.

But only some of the money you use to open a Lifetime Pension counts towards Centrelink's income and assets tests. This means you might:

  • tickGet the Age Pension if you weren't already eligible, or
  • tickGet higher Age Pension payments.

Let's look at how how the Lifetime Pension counts towards the income and assets tests. We’ll compare it with an account-based pension like our Retirement Income account.

tickLifetime Pension tickRetirement Income account
Assets test

60% of the purchase price until life expectancy,1 and after this it's 30%

 Your current balance is assessed
Income test 60% of your payments are assessed as income Deemed income based on balance

Using the Age Pension and your super

See how you could benefit from using a Lifetime pension with the Age Pension. We've created these examples to help explain how it works.2

 

Retire with more income

Walter's 67 and plans to retire next year. His total assets are $625,000 and he wouldn't normally be able to get the Age Pension.

 

Have income certainty

Kris and Leslie are both 67 and retired teachers, with a combined $930,000 in super. They'd like a steady income stream through their retirement.

 

Have more to spend earlier

Retired healthcare workers Gita and Vijay have a combined $800,000 in super. They want to enjoy life now without worrying about their money running out.

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The purpose of the Age Pension is to support older Australians who are on a low income. The Age Pension rates are different for singles and couples and usually change twice a year, on 20 March and 20 September.

Here are the maximum basic rates per fortnight for Centrelink's Age Pension in April 2023:

Single $971.50
Couple (each) $732.30
Couple (combined) $1,464.60 
Couple (living apart because of ill health)  $971.50 

You'll get less than these amounts with a part pension. There are also pension supplements available to help with the cost of living.

Using a Lifetime Pension in retirement could make you eligible for a part or full Age Pension.

To be eligible to get the Age Pension, you must be 66 or 67 years old, depending on your date of birth.

Date of birth Age Pension age
1 January 1954 - 30 June 1955 66 years
1 July 1955 - 31 December 1956 66 years and 6 months
1 January 1957 onwards 67 years (from 1 July 2023)

Note: These figures are correct as at 23 January 2023, Check the Services Australia website for more details.

When you can access your super is different to when you can access the Age Pension.

 

The Age Pension assets test includes more than just money in the bank or your super; it also includes other things you own like your home contents, car, or caravan.

Here are the limits for assets as at April 2023:

If you get a full Age Pension

  • A single person can have up to $280,000 in assets if you own your home, or $504,500 if you don't own a home, before your pension reduces.
  • A couple on a full pension can have up to $419,000 for homeowners, or $643,500 for non-homeowners.

If you get a part pension

  • You’ll lose your pension if you’re single and your assets are over $634,750 (homeowner) or $859,250 (don't own a home).
  • Couples on a part pension will lose their pension if their assets are over $954,000 (homeowners) or $1,178,500 (don't own a home).
  • Limits are higher for couples who are living apart due to illness.

Your financial assets include any property or items you own in full, in part, or have an interest in. They can affect how much of the Age Pension you get paid.

Assets include:

  • Financial investments
  • Home contents, personal items and vehicles
  • Real estate, annuities, income streams and superannuation pensions
  • Sole traders, partnerships, private trusts and private companies.

The assets test helps the government work out if you can get the Age Pension.

The government uses deeming rules to work out how much income you earn from your financial assets. Deeming rates assume that you're earning income at a fixed rate, regardless of how much income you're actually getting.

The government counts your Retirement Income account as a financial asset (although there are some exemptions). So your balance will be ‘deemed’ to earn a certain amount of income based on the balance at 1 July each year. If you open your account part way through the financial year, the balance at the start of the account will be used.

Find out how the government works out your deemed income.

Visit our online hub for advisers where you can get our training module for financial advisers, our user guide, plus other helpful information. Or check our frequently asked questions for financial advisers.

If you have any questions, please contact us.

Can't find an answer to your question? Try our full list of Lifetime Pension FAQs or request a call to discuss your options.


Next steps

Open your Lifetime Pension

Enjoy the security of an income for life, no matter how long you live.

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Get financial advice

Make confident decisions about your future with help from a professional.

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Attend a seminar

Learn how you can create the best strategy for your super.

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1. Under the means test rules, 60% of the purchase price is assessed until you reach the life expectancy for a 65-year-old male, which is currently 85 years old. See the Australian Bureau of Statistics for the latest life expectancy figures.
2. We've provided these case studies to help explain how the Age Pension and Lifetime Pension work together, and the members shown are not real. Figures may also be rounded to make it easier to understand. You should seek advice from a qualified licensed professional about your own circumstances.