Aussies born on or after 1 January 1957 can apply for the age pension when they turn 67, whether retired or not.
To be eligible for the full pension, or a part-payment, you have to pass an assets test and income test.
The thresholds for those tests changed earlier this month.
So, let's take a look at the new thresholds, and also assess whether the pension is enough to see you through retirement.
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Is the age pension enough?
On the face of it, the age pension is not enough on its own to cover life's expenses in retirement.
The full age pension is $1,200.90 per fortnight for singles, and $905.20 per person, per fortnight, for couples.
That translates to $31,223 per year for singles and $47,070 per year for couples.
Australia's benchmark retirement budgeting tool, the ASFA Retirement Standard, says retirement costs more than this.
A 'modest' retirement costs $36,434 per year for singles and $52,473 per year for couples — if you own your own home.
If you're renting, a modest lifestyle costs $51,164 per year for singles and $69,002 per year for couples.
A 'comfortable' retirement costs even more: $55,923 per year for single homeowners and $78,566 per year for couple homeowners.
You can find out exactly how ASFA defines modest and comfortable retirement lifestyles here.
ASFA does not provide an estimate for comfortable retirement costs for renters.
So, how do you fill the gap given the age pension doesn't cover all living expenses?
Ideally, you'll have some superannuation, other investment income, or wages income to do exactly that.
But Centrelink has limits on how much you can own and earn while still qualifying for the age pension.
So, let's go over the newly-revised thresholds for the pension asset and income tests.
Asset test
Your assessable assets include ASX shares, super, bonds, managed funds, rental properties, and cash. Your home is excluded.
Single homeowners can own up to $333,000 in assets and still qualify for a full pension.
If you own assets worth between $333,001 and $733,500, you will qualify for a part-payment.
Single renters can own up to $600,000 in assets and still qualify for the full pension.
If you own assets worth between $600,001 and $1,000,500, you will be eligible for a part-pension.
Couple homeowners can own up to $499,000 in assets while still being eligible for the full age pension.
If you have assets worth between $499,001 and $1,102,50, you will qualify for a part-payment.
Couple renters can own up to $766,000 in assets and still be eligible for the full age pension.
If you own assets worth between $766,001 and $1,369,500, you can apply for a part-payment.
Income test
Singles can earn up to $226 per fortnight and still qualify for the full age pension.
If you earn between $227 and $2,627.80 per fortnight, you can apply for a part-pension.
Couples can earn up to $396 per fortnight and still qualify for the full age pension.
If you earn between $397 and $4,016.80 per fortnight, you will be eligible for a part-pension.
Assessable income includes wages and investment income.
Rental income must be reported each year. For everything else, Centrelink uses generous deeming rates to estimate your annual investment income.
The lower deeming rate is 1.25% and the upper deeming rate is 3.25%.
The asset value threshold is $66,800 for singles and $110,600 for couples.
This means the first $66,800 of your assets, or $110,600 for couples, has a 1.25% deemed rate of interest.
Everything above that is deemed to have earned 3.25% interest.
