Lifetime Pension and the Age Pension

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:

Get the Age Pension if you weren't already eligible, or
Get 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.

	Lifetime Pension	Retirement Income account
Assets test	60% of the purchase price until life expectancy,¹and 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 $675,000 and he wouldn't normally be able to get the Age Pension.

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Have income certainty

Sue is a 70-year-old retired teacher, with $300,000 in super. She'd like a steady income stream through her retirement.

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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.

Read story

Income and assets tests

Age: 67
Goals: Retire next year with Age Pension support
Super: $550,000
Assets: Owns his home and $125,000 in other assets (car and household contents)
Income: No extra income sources

Walter's looking forward to retirement but being by himself, he wants to get the most out of his savings. Walter's assets add up to $675,000 so he wouldn't normally be able to get the Age Pension. But he's decided to open a Lifetime Pension using $250,000 of his super. And with the other $300,000, he'll open a Retirement Income account.

Starting balance

Initial funds	Current plan	New plan
Retirement Income account	$550,000	$300,000
Lifetime Pension	N/A	$250,000
Other assets	$125,000	$125,000
Total	$675,000	$675,000

This means if Centrelink assesses Walter as eligible, he could get an Age Pension of $7,710 this year and a Commonwealth Pensioner Concession Card. His overall annual income in retirement has increased by $12,718.

Why? The Age Pension assets test applies to only 60% of the Lifetime Pension purchase price. So he has less super counted in the test.

Walter will now get:

Lifetime Pension fortnightly payments for the rest of his life
Age Pension payments and concession card discounts
Money from his Retirement Income account for as long as the balance lasts
Flexibility to make withdrawals from his Retirement Income account as needed.

Retirement income

Source	Current plan	New plan
Retirement Income account	$27,500/year	$15,000/year¹
Lifetime Pension	N/A	$17,508/year²
Centrelink Age Pension	N/A (not eligible)	$7,710/year³
Total	$27,500/year	$40,218/year
Difference		+ $12,718

1. Income based on minimum withdrawal rate of 5%. Income amount will vary each year.
2. . Lifetime Pension payments based on 2024-25 financial year single option rates. Income amount will vary each year.
3. Age Pension income estimate based on income and assets tests as at 20 September 2024, and subject to Centrelink assessing him as eligible.

Retirement calculator

Find out how much extra you could get from the Age Pension when you mix and match different retirement income products.

Calculate now

Have a question? Check our FAQs Show all Hide all

How much is the Age Pension? Show content

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 September 2024:

Single	$1,047.10
Couple (each)	$789.30 each
Couple (combined total)	$1,578.60
Couple (each) living apart because of ill health	$1,047.10

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.

What age can I get the Age Pension in Australia? Show content

To be eligible to get the Age Pension you must be 67 years old, (see Centrelink for eligibility).

When you can access your super (when you reach age 60 and retire) is different to when you can access the Age Pension.

How much savings can a pensioner have in the bank before it affects the Age Pension? Show content

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 September 2024:

If you get a full Age Pension

A single person can have up to $314,000 in assets if you own your home, or $566,000 if you don't own a home, before your pension reduces.
A couple on a full pension can have up to $470,000 for homeowners, or $722,000 for non-homeowners.

If you get a part pension

You’ll lose your pension if you’re single and your assets are over $695,500 (homeowner) or $947,500 (don't own a home).
Couples on a part pension will lose their pension if their assets are over $1,045,500 (homeowners) or $1,297,500 (don't own a home).
Limits are higher for couples who are living apart due to illness.

What are assets? Show content

Your financial assets include most 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.

What does deeming mean? Show content

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.

I'm an adviser, where can I get more detailed information? Show content

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.

Find out more

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 man, which is currently 84 years old. See Services Australia for more details.
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.