How much money can you have in the bank and still get the full pension in Australia?

According to Services Australia's figures, an individual's eligibility for the full Age Pension depends on meeting both an income and an assets test, not just the bank balance. To understand how much money can you have in the bank and still get the full pension in Australia, it is essential to consider your total assessable assets and income.

Quick Summary

Your eligibility for the full Australian Age Pension is assessed via the income and assets tests, with your bank balance contributing to your total assessable assets. The specific threshold depends on your relationship status and homeownership, with the pension rate determined by whichever test produces the lower entitlement.

Key Points

• Means Test: Your eligibility for the full Age Pension in Australia depends on passing both an income test and an assets test, with the lowest calculated pension amount being paid.

• Assets Test: The assets test counts the total value of your financial assets, including your bank balance, investments, and other possessions, but generally excludes your primary residence.

• Full Pension Limits: As of September 20, 2025, to receive the full pension, a single homeowner must have assessable assets under $321,500, while a non-homeowner must be below $579,500.

• Deeming Rates: Centrelink uses 'deeming' to calculate the income from your financial assets, including bank accounts, assuming a set rate of return rather than using the actual interest earned.

• Gifting Rules: You can reduce your assessable assets by gifting money, but there are limits ($10,000 per financial year, max $30,000 over 5 years) that must be followed to avoid a penalty.

• Work Bonus: If you continue to work, the Work Bonus allows you to earn up to $300 per fortnight from employment income before it affects your Age Pension under the income test.

• Homeownership Matters: The thresholds for the assets test are significantly higher for non-homeowners, reflecting the additional financial needs of renting or paying a mortgage.

Understanding the Age Pension Means Test

For many retirees, the Age Pension is a vital part of their financial security. However, calculating eligibility is not straightforward and involves what Centrelink calls a 'means test.' This test consists of two parts: the assets test and the income test. The crucial rule is that Centrelink applies both tests, and the one that results in the lower pension payment is the one that determines your entitlement. This means your bank balance is just one piece of a much larger financial puzzle.

What are Assessable Assets?

The assets test is designed to measure the total value of all your assets, including your bank accounts. While your principal home is typically exempt, most other things you own are counted. This includes:

• Financial investments, such as shares, term deposits, and managed funds
• Superannuation that you can access (for those over Age Pension age)
• Investment properties, holiday homes, or land beyond your primary residence's exempt area
• Vehicles, caravans, boats, and other personal possessions with a significant market value
• Business assets
• Loans made and debts owed to you

The Role of Deeming Rates

Instead of assessing the actual interest you earn on financial assets like savings, shares, and super, Centrelink uses a process called 'deeming.' This assumes your financial assets earn a set rate of income, regardless of the actual return. The rates are typically reviewed and adjusted by the government. Your bank balance and other financial investments are subject to these deeming rules under the income test.

The Assets Test Thresholds for a Full Pension

As of September 20, 2025, specific thresholds for the assets test determine eligibility for the full Age Pension. If the total value of your assessable assets is below the relevant threshold for your situation, you can potentially receive the full pension, provided you also pass the income test. It's important to remember that for couples, these are combined limits, not individual ones.

Here are the asset thresholds for a full Age Pension as of September 20, 2025:

• Single Homeowner: Assessable assets must be less than $321,500.
• Single Non-Homeowner: Assessable assets must be less than $579,500.
• Couple (Combined) Homeowner: Assessable assets must be less than $481,500.
• Couple (Combined) Non-Homeowner: Assessable assets must be less than $739,500.

Comparison of Full vs. Part Pension Asset Limits

If your assets exceed the full pension limits, you may still be eligible for a part pension. The amount reduces as your assets increase. If your assets surpass the upper cut-off point, your Age Pension payments will cease entirely. The following table provides a clear comparison of the asset limits.

Your Situation	Full Pension (Assets less than)	Part Pension Cut-off (Assets exceed)
Single Homeowner	$321,500	$714,500
Single Non-Homeowner	$579,500	$972,500
Couple (Combined) Homeowner	$481,500	$1,074,000
Couple (Combined) Non-Homeowner	$739,500	$1,332,000

Strategies to Maximise Your Pension

Understanding the tests is one thing; proactively managing your finances is another. There are legitimate strategies you can consider to maximise your pension entitlement.

1. Reduce Assessable Assets: As the family home is exempt, investing in home improvements can reduce your assessable assets without affecting your eligibility. You could also use funds to purchase other exempt items, such as pre-paid funeral bonds (up to a certain limit).
2. Take Advantage of Gifting Rules: You can gift a certain amount of money to family without affecting your pension. The current limit is $10,000 in a financial year, with a maximum of $30,000 over five years. Anything over this amount will be counted as an asset for five years.
3. Use the Work Bonus: The Work Bonus allows pensioners to earn up to $300 per fortnight from work without it being counted under the income test. Unused amounts can be 'banked' up to a maximum of $11,800, which is useful for those who work seasonally or irregularly.
4. Consider Annuities: Some financial products, like certain annuities, are assessed differently under the means test and may help to increase your pension entitlement.
5. Seek Financial Advice: A financial planner or the Financial Information Service from Centrelink can provide tailored advice based on your personal circumstances.

Conclusion: Navigating Retirement Finances

The question of how much money can you have in the bank and still get the full pension in Australia doesn't have a single answer, but a nuanced one based on your total assessable assets and income. Your bank balance is simply one component of the overall assets test, which is judged alongside the income test. By understanding the thresholds and how assets like savings are assessed, you can make informed decisions to manage your retirement finances effectively. Always stay updated with the latest government figures and consider professional advice for a clear picture of your entitlements. For the most up-to-date information, it is recommended to visit the official Services Australia website.

Services Australia

Frequently Asked Questions

What is included in the assets test besides my bank account?

The assets test includes most of your property and possessions, such as financial investments (shares, term deposits), superannuation (if you're over Age Pension age), investment properties, and personal valuables like cars, boats, and caravans. Your principal home is typically exempt.

Does the money I earn from my savings affect my pension?

Under the income test, Centrelink uses 'deeming' rates to calculate the income from financial assets like savings, assuming a set rate of return. This deemed income is then assessed against the income test thresholds, potentially affecting your pension amount.

Can I have a part pension if I have too many assets for a full pension?

Yes. If your assessable assets exceed the limit for a full pension but are still below the cut-off point for a part pension, your pension will be reduced based on how much you are over the threshold.

Are the assets limits different for homeowners and non-homeowners?

Yes, the asset-free thresholds are significantly higher for non-homeowners. This is because non-homeowners are not presumed to have a major asset like a home, and their costs are higher due to rent or mortgage payments.

How often do the Age Pension limits change?

The Age Pension rates, income test free areas, and asset test limits are reviewed and adjusted periodically, typically in March, July, and September each year, to account for inflation and economic changes. It's important to check the Services Australia website for the most current figures.

Does my superannuation count towards the assets test?

Your superannuation is generally included in the assets test once you reach Age Pension age and can access it. However, if your partner is under Age Pension age, their super in an accumulation phase is typically not counted.

What if my spouse and I have combined assets? How is our pension calculated?

For couples, Centrelink combines the total income and assets of both partners when conducting the means test. The pension rate is then determined based on this combined figure, with different thresholds applying than for single individuals.