Most Australians hope to have enough money in their superannuation to be able to fund a comfortable retirement lifestyle.
But for those who are caught short, or are worried they won't have enough to support themselves after they stop working, the Age Pension is an extra safety net.
The good news is, you're not forced to pick one or the other.
The bad news is that your Age Pension eligibility is subject to an income test and an asset test.
And the asset test includes the amount of money you have in your superannuation.
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How much is the Age Pension?
The Age Pension is a maximum payment of $1,100.30 per fortnight for single Australians aged 67 years or older.
Couples can get up to $829.40 per person after the age of 67.
This doesn't include any additional potential supplement rates.
How much can I have in my superannuation and still get the Age Pension?
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.
Your superannuation balance counts towards your total asset balance once you reach Age Pension age. Before then, it is exempt.
This includes superannuation that has been converted to an account-based pension, as well as defined benefit pensions and annuities.
However, if your fund is paying you a superannuation pension, it is assessable as an income stream.
There is still a part-payment option
If your superannuation balance puts you over the threshold for your asset test, it is still possible to receive a part-payment.
If your assets are less than $722,000 if you're a single homeowner, and $980,000 if you're a non-homeowner, you are still entitled to some level of payment.
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.
How does the cut off compare with the average superannuation balance at age 67?
According to the Association of Superannuation Funds of Australia (ASFA) data, the average superannuation balance for Australian men aged 65-69 is $448,518, and for women it is $392,274.
Even at a quick glance, it's clear that, unless you're an individual non-homeowner, the average superannuation balance would be too high to qualify for the full Age Pension.
