27/07/2026
COULD YOU STILL BE ELIGIBLE FOR THE AGE PENSION IF YOU HAVE A HEALTHY SUPER BALANCE?
When many Australians think about retirement, they assume there are two possible outcomes: either you have enough super to fund your retirement, or you rely on the Age Pension.
In reality, retirement often sits somewhere in between.
One of the biggest misconceptions we hear is that building a substantial superannuation balance automatically excludes you from receiving government support. While a larger super balance can affect your eligibility, many retirees are surprised to discover they may still qualify for a partial Age Pension, even after years of diligent saving.
Australia's retirement system was designed to be flexible. Rather than forcing retirees into an "all or nothing" arrangement, it allows many people to draw income from multiple sources at once. For some, this means combining superannuation, personal investments and a partial Age Pension to create a sustainable income throughout retirement.
The Age Pension is assessed using both an assets test and an income test, with the outcome of these tests determining whether you qualify and how much support you receive. This means your eligibility is influenced by a range of factors beyond simply the value of your superannuation balance. Your overall financial position, how your assets are structured and your personal circumstances can all play a role.
What many retirees don't realise is that Age Pension eligibility can also change over time.
In the early years of retirement, it's common for superannuation to provide the majority of income. As savings are gradually drawn down to fund lifestyle needs, some retirees later become eligible for a larger Age Pension entitlement. This gradual transition can form an important part of a long-term retirement income strategy and may help provide additional financial security in later years.
The value of the Age Pension also extends beyond the fortnightly payment itself. Even a small Age Pension entitlement can provide access to a range of concessions that help reduce day-to-day living costs. Depending on your circumstances, this may include healthcare, pharmaceutical, utility and other government-supported benefits that can make a meaningful difference over the course of retirement.
This is why retirement planning is about much more than simply asking, "How much super do I need?"
A successful retirement strategy considers how to generate reliable income, manage investment risk, preserve flexibility and make the most of any government support available to you. Often, the most effective approach is one that balances several income sources working together over different stages of retirement.
The good news is that having a healthy super balance doesn't necessarily mean missing out on the Age Pension. In fact, many Australians enjoy the benefits of both throughout their retirement journey.
Understanding how these pieces fit together can help you make more informed decisions and give you greater confidence about your financial future.
For more information book a complimentary appointment with a My Fortress adviser.
https://www.myfortress.com.au/retirement-ready
3512 7800
This article contains general information only and does not take into account your personal objectives, financial situation or needs. You should consider obtaining professional financial advice before making financial decisions.
