The Age Pension is a fortnightly payment to Australians aged 67 or older to help fund retirement. The payment comes on top of superannuation and is designed as a safety net for retirees who don't have enough to support themselves after they stop working.
There isn't a flat rate available to everyone though, the amount you can get depends on two criteria: your income and your assets.
An income test assesses all of your income pooled from all sources. That includes anything from superannuation contributions, investment income, dividend payments, part-time wages, bonuses or commission payments. It's applicable regardless of your age.
Then an asset test, includes any stocks, like S&P/ASX 200 Index (ASX: XJO) shares, property or possessions you own in full, in part, or have an interest in. This includes assets held outside Australia and any debts owed to you. This generally doesn't include your principal home.
You'll also need to meet residency requirements.
The problem is, by retirement most Australians have several assets to their name, including owning their home outright. And that could affect how much you are paid.
Here's everything you need to know about exactly what you can get in the Age Pension, and any asset limits.
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How much can I get on the Age Pension?
Age Pension rates vary wildly for singles and couples. The payment also depends whether you meet income and assets tests, and whether or not you are a homeowner.
As of March this year, the Age Pension is a maximum payment of $1,100.30 per fortnight for singles and up to $829.40 per person for couples. This doesn't include any additional potential supplement rates.
How much can I own in assets in retirement and still qualify?
As of last month, in order to receive the full Age Pension, single homeowners can own assets up to a value of $321,500 and non-homeowners can own assets up to $579,500 in retirement.
A couple combined can own up to $481,500 in total if they own a property, or $739,500 if they don't.
But it's still possible to receive a part pension if you earn over those limits.
Your assets can total up to $722,000 if you're a single homeowner, and $980,000 if you're a non-homeowner. You can't get the full Age Pension, but you're still entitled to some level of payment depending on where you fall between the two brackets.
Couples are also entitled to a part-payment so long as their combined assets aren't more than $1,085,000 for homeowners. Non-homeowners can own assets totalling up to $1,343,000.
If you're in retirement and get Rent Assistance with your pension, your cut off point for a part pension is higher.
