Superannuation & Centrelink: Making them work together in retirement

At Audient Financial Planning, we specialise in helping you understand how your superannuation income stream and the Centrelink Age Pension can work hand in hand to support a comfortable and secure retirement.

The Age Pension provides a steady income to eligible Australians. It helps to cover modest living costs when retired.

Many retirees are unsure how accessing their super might affect their pension entitlements.

The truth is: with the right strategy, you can optimise both.

How our financial advisor Arpita Bhatt can help you?

At Audient Financial, our Senior Financial Advisor, Arpita Bhatt, offers expert, personalised guidance to help you navigate the complexities of retirement with confidence.

Arpita takes the time to understand your unique financial position, lifestyle aspirations, and long-term goals. With a strategic and compassionate approach, she will assess your personal and financial situation to help you:

• Structure your superannuation income stream to support Age Pension eligibility
• Clearly understand how Centrelink’s income and assets tests apply to your retirement savings
• Maximise your Age Pension entitlements while maintaining a steady, tax-effective income from super
• Avoid costly mistakes such as excess withdrawals or poorly timed asset sales
• Develop a sustainable retirement income plan that supports you well into the future

With Arpita Bhatt by your side, you’ll feel informed, empowered, and in control of your retirement journey.

Strategic Retirement Planning – Aligned to Your Unique Needs

No two retirements are the same. That’s why we design personalised retirement strategies that integrate your income sources, optimise Centrelink entitlements, and provide clarity and confidence for the years ahead.

Let’s make sure your superannuation and Age Pension aren’t just working side by side—but working strategically together to support a secure and fulfilling retirement.

Some of the most common questions asked are as below:

At what age I become eligible for Centrelink Age Pension?

In Australia Age Pension eligibility age is 67.

When I turn 67, do I automatically start receiving Age Pension?

The short answer is “NO”. You do not automatically become eligible for the Age pension. You need to apply for the Age Pension.

Is everyone eligible for the Age Pension once they turn 67?

NO, not everyone is eligible for the Age Pension. Age Pension eligibility depends on certain factors. Whether you qualify for an Age Pension will depend on how Government policy changes between now and when you retire. This is referred to as Legislative Risk, or the risk the Government changes the rules.

What are the Age Pension eligibility criteria?

Eligibility for the Age Pension is determined by a range of factors, including your personal and financial circumstances. Key considerations include:

• Your relationship status – whether you are single or a couple.
• Home ownership – homeowner and non-homeowner asset thresholds differ.
• Your and your partner’s age – Age Pension age currently starts at 67 (subject to change)
• Your and your partner’s income and assets – your partner’s financial situation may impact your eligibility
• Other sources of income – such as rental income, employment, or investment returns. Centrelink assesses income you earn from both Australian and international sources, including:
  • Employment income – from full-time, part-time, casual, or seasonal work
  • Rental income – generated from investment properties
  • Business income – including profits from self-employment or business activities
  • Overseas pensions or benefits – such as foreign social security or government pensions
• Centrelink does not assess the actual income you earn from your financial assets—such as bank accounts, shares, bonds, loans, or superannuation. Instead, to simplify the process, Centrelink applies a method called ‘deeming’, which estimates the income your financial assets are assumed to earn. This deemed income is then used in the Income Test to determine your Age Pension entitlement.
• Your and your partner’s Assets – including investment properties, bank accounts, and shares, vehicles.
• Your and your partner’s Superannuation balances – Both your and your partner’s superannuation balances are considered when assessing Age Pension eligibility. However, if your partner is under the Age Pension age (currently 67), their superannuation is generally exempt from the assessment—unless they commence an income stream (such as an account-based pension) before reaching Age Pension age. In that case, the income stream balance will be included in the eligibility assessment and may reduce your entitlement.

Given the complexity of these rules, it’s important to seek personalised financial advice to understand how they apply to your specific situation. Each of these elements contributes to how Centrelink assesses your eligibility under the income and assets test.

Understanding how these factors interact is essential for maximising your entitlements. At Audient Financial, we help you navigate this process with clarity and confidence.

Is my principal home is counted towards the asset test?

No. the principal home is not counted towards the asset test for Age Pension.

How is the Age Pension Calculated?

The Age Pension is determined by applying two separate tests: the Income Test and the Assets Test. Centrelink will assess your income and your assets independently.

Once both are assessed, the lower calculated amount is your Age Pension payment.

What is Deemed Income?

Centrelink doesn’t look at how much you actually earn from your savings or investments.

Instead, it uses a formula called the “deeming rules” to estimate how much income you should be earning from those financial assets.

This estimated amount is called “deemed income.”

Commonwealth Seniors Health Card

Top 6 Benefits of the Commonwealth Seniors Health Card (CSHC)

• Cheaper Prescription Medicines: Access medications at reduced costs through the Pharmaceutical Benefits Scheme (PBS).
• Higher Medicare Refunds: Receive larger rebates on out-of-pocket medical expenses once you reach the Medicare Safety Net threshold.
• Reduced Healthcare Costs: Enjoy free or discounted services such as ambulance, eye tests, hearing services, and dental care (varies by provider and location).
• Discounts on Utilities and Council Rates: In some states, such as WA, cardholders may receive up to a 50% rebate on water service charges and property rates. Electricity and gas rebates may also be available—check your state’s specific entitlements.
• Transport Concessions: Access reduced fares for public transport in metropolitan and regional areas across Australia.
• Recreational Discounts: Benefit from discounted entry to recreational venues, including gyms, parks, cinemas, and cultural attractions.

Eligibility and concessions vary by state and provider. Always check local government guidelines for up-to-date information.

Eligibility for the Commonwealth Seniors Health Card (CSHC)

• Age Requirement: You must be at least 67 years old, which is the current Age Pension age.
• Residency Requirement: You must be an Australian citizen or a permanent resident residing in Australia. Permanent residents may be subject to a waiting period of up to 4 years before becoming eligible.
• Income Test: From 20 September 2024, your assessable income must be below the following thresholds:
  • $99,025 per year for a single person
  • $158,440 per year combined for a couple

Note: Assets are not included in the eligibility assessment for this card.

The above income test eligibility criteria are subject to change. Please refer to “A Guide to Australian Government Payments” for the latest rules.

Common Questions About the Age Pension

• How much income can I earn before my Age Pension is reduced?
• What are the current deeming rates used by Centrelink?
• How much can I hold in assets before it affects my pension entitlement?
• Who can apply for a Commonwealth Seniors Health Card?
• Do couples both need to apply?

If you’re seeking answers to these questions, we recommend reviewing the official resource:

📘 A Guide to Australian Government Payments

This guide provides up-to-date information on income thresholds, deeming rates, and asset limits for Age Pension eligibility.