The value of investment assets you can own while still qualifying for the age pension is about to get a boost. From 20 September, the upper thresholds are rising and if you're sitting close to the old limit, this change could be the difference between missing out and pocketing a payment.
The lift comes from indexation adjustments, made twice a year to keep pace with inflation. Here's exactly what's changing.
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Who qualifies, and when
If you were born on or after 1 January 1957, you become eligible for the pension at age 67 — retired or not.
Two tests decide your payment of the age pension: an assets test and an income test. Both get new guardrails on 20 September. This article zeroes in on the assets test.
What counts and what doesn't
Your home is excluded entirely from the assets test. Renters get more breathing room too, with higher thresholds to compensate for not owning property.
What does count: superannuation, ASX shares, bonds, investment properties, and cash.
This round of indexation only lifts the upper thresholds, the point where your part-pension cuts out completely.
New limits if you own your home
Single homeowners with assets under $333,000 get the full pension. Between $333,001 and $745,750 (up from $733,500), you'll get a part-payment.
Couple homeowners with assets under $499,000 get the full pension. Between $499,001 and $1,121,000 (up from $1,102,500), it's a part-payment.
New limits if you rent
Single renters with assets under $600,000 get the full payment. Between $600,001 and $1,012,750 (up from $1,000,500), you'll get a part-payment.
Couple renters with assets under $766,000 get the full payment. Between $766,001 and $1,388,000 (up from $1,369,500), it's a part-pension.
How much will you actually get?
Payments are rising too. Single pensioners get an extra $36.80 per fortnight from 20 September, lifting the full pension to $1,237.70 per fortnight.
Couples get an extra $27.80 per partner, per fortnight, bringing the full pension to $933 per partner, per fortnight.
Even a tiny pension is worth claiming
Here's the part too many retirees overlook: even if your assets sit right near the upper limit and you only qualify for a few dollars a fortnight, apply anyway.
Why? Because that part-pension unlocks the Pensioner Concession Card (PCC), and the PCC is worth far more than the payment itself. It can shave thousands of dollars a year off everyday living costs in retirement, from healthcare to utilities to transport.
Foolish takeaway
Indexation changes like this rarely make headlines, but they can genuinely shift whether you qualify for age pension or how much.
If your asset position is anywhere near these thresholds, it's worth checking your eligibility again after 20 September. A payment that looked out of reach in August might be back on the table in September.
