Here’s how it all fits together. 

What is the Age Pension? 

The Age Pension is a payment from the Australian Government designed to help cover living costs once you qualify. 

It’s not automatic, you need to apply and be assessed by Centrelink to see if you’re eligible.  

Who can get it? 

To qualify for the Age Pension, you generally need to meet three main conditions: 

• Age: You must be at least 67  
• Residency: You need to meet Australian residency rules (usually 10 years of which 5 continuous years must be in Australia)  
• Means test: Your income and assets must be below certain thresholds  

That last one is where things start to connect with your super. 

Where super fits into the picture 

Your super plays a big role in whether you qualify for the Age Pension, and how much you receive. 

Once you reach pension age, your super may be treated as part of your financial assets and income  

That means: 

• If you have higher super balances, your pension may be reduced or you may not be eligible 
• If you have lower super savings, you may be eligible for more Age Pension support  

In short, super and the Age Pension work together, not separately, and many retirees use both at the same time. It’s more of a sliding scale than an either/or system. 

How much Age Pension do people get? 

The Age Pension is income and asset tested, which means two people can receive very different amounts. 

Income test 

This looks at money you earn from work, investments, and super. Some of the income will be determined by using what is called deemed interest rather than the actual returns.  

Assets test 

This looks at what you own, including savings, investments, and super (but generally not your home). 

The test that results in the lower payment is the one used. 

Because of this, people may receive a part pension rather than a full pension. 

A simple example 

Take someone like John, who retires at 67. He starts drawing a regular income from his super account and applies for the Age Pension.  

Because of the means test, John doesn’t get the full pension, but he still receives a part pension, which helps top up his income. 

Combined, his super + Age Pension gives him a more stable retirement income than either one alone. 

Why it can feel confusing 

Most people don’t realise how interconnected super and the Age Pension are until they get close to retirement. 

It can feel complicated because: 

• Rules change depending on age and balances  
• Super can be counted differently depending on how it’s accessed  
• Small financial changes can affect pension eligibility  

That’s why planning ahead really helps. 

Planning your retirement income 

The key idea is that retirement income in Australia is usually a mix and understanding how they interact can help you make better decisions about: 

• When to access super  
• How much to draw down  
• When to apply for the Age Pension  
• How to structure retirement income  

To see how your super and the Age Pension could work together in retirement, use our calculator and estimate your future income.  

Calculate now

 

We’re here to help 

Because everyone’s circumstances are different, and the rules around super and the Age Pension can feel complex, it’s often helpful to get guidance before making decisions. As part of your CareSuper membership you can give us a call for simple super help*, or for more comprehensive retirement planning advice you can book in to see one of our experienced financial planners for a competitive fee.^ 

Book a call-back today

*CareSuper Advice is a financial advice service available to CareSuper members through CareSuper Advice Pty Ltd, ABN 78 102 167 877, AFSL No. 284443 which is licensed to provide financial advice services and deal in financial products. CareSuper Advice Pty Ltd is a wholly owned company of CareSuper (Secretariat Co) Pty Ltd ABN 29 104 826 413, a related entity of CareSuper Pty Ltd ABN 14 008 650 628, AFSL No. 238718 (Trustee) which is the trustee of CareSuper ABN 74 559 365 913 (Fund). 
^Advice is provided by one of our financial planners who are Authorised Representatives of Industry Funds Services Limited (IFS). IFS is responsible for any advice given to you by its Authorised Representatives. Industry Fund Services Limited ABN 54 007 016 195 AFSL 232514. 
This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you. Before making a decision about CareSuper, you should consider if this information is right for you and read our Product disclosure statement, Target market determination and Financial services guide. These are available at caresuper.com.au/pds or by calling 1800 005 166. 

Information correct as at 6 August 2026.