By Philippa Billings, Chief Advice Officer, Otivo
A common worry among people approaching retirement is that their super will lock them out of the Age Pension entirely. For most retirees, that's not how it works. The two are designed to work together, with the pension tapering as your own income and assets rise, rather than switching off the moment you have savings. Here's how super and the Age Pension actually interact.
Quick answer
The Age Pension and your super work together for most retirees. The Age Pension is means-tested through an income test and an assets test, and how your super counts depends on whether it's still in accumulation or paying an income. As at July 2026, many retirees receive a part Age Pension alongside their super, rather than one or the other.
Do super and the Age Pension work together?
Yes, and for a large share of retirees they operate as a pair. The Age Pension is built as a means-tested foundation, so it tapers as your own income and assets grow rather than cutting out at a single threshold. That means having super doesn't usually replace the Age Pension, it often sits alongside a part payment. Thinking of them as partners rather than rivals is closer to how the system actually behaves.
How is the Age Pension means-tested?
Two tests apply, an income test and an assets test, and Services Australia applies whichever produces the lower payment. The income test looks at your assessable income, including deemed income from financial assets, while the assets test looks at the value of your assessable assets, with the family home generally excluded. Because both tests taper the payment gradually, small changes in your finances tend to move your entitlement by degrees rather than all at once. The current thresholds and deeming rates are set by Services Australia.
How does your super count towards the tests?
It depends on the stage your super is in. Before you reach Age Pension age, super held in accumulation is generally not counted in the tests. Once you're of Age Pension age, super supporting an account-based pension is generally counted as an assessable asset, and deeming rules estimate an income from it. That shift is why the way your super is held, and when, can influence your entitlement, and why it's worth understanding rather than assuming.
Does having super stop you getting the Age Pension?
Usually not entirely. Because the payment tapers, many people with super still qualify for a part Age Pension, and only those with higher levels of assessable income or assets fall outside it. The widespread belief that any super disqualifies you is one of the more persistent myths in retirement planning. Whether you qualify, and for how much, depends on your specific circumstances against the tests.
How can the two be balanced over retirement?
The mix tends to shift as you go. In early retirement, when your super balance is highest, your Age Pension may be smaller or nil. As you draw your super down over the years, your assessable assets fall, and your Age Pension entitlement can rise to help fill the gap. For someone like a 70-year-old steadily drawing on a $300,000 pension balance, that gradual handover is often the shape retirement income takes.
Frequently asked questions
Can I get the Age Pension if I have super?
Often yes, as a part payment. The Age Pension tapers with your income and assets rather than cutting off at the first sign of savings, so many retirees receive some pension alongside their super. Whether you qualify depends on the means tests.
Does my super count as an asset for the Age Pension?
Once you reach Age Pension age, super supporting an account-based pension is generally counted as an assessable asset, with deeming applied for the income test. Before Age Pension age, super in accumulation is generally not counted.
Will drawing down my super increase my Age Pension?
It can. As your assessable assets fall through drawing on your super, your Age Pension entitlement may rise, which is why the pension often carries more of your income later in retirement.
Where to from here
Super and the Age Pension are easier to plan when you can see them together. Otivo, a licensed Australian financial advice platform holding AFSL and Australian Credit Licence No. 485665, offers a retirement planning module that factors in Age Pension eligibility alongside your super and other assets, based on your age, income, balance and goals. It shows the combined picture rather than one piece of it.
Sources
- Services Australia — Age Pension income test, assets test and deeming — servicesaustralia.gov.au
- ASIC MoneySmart — the Age Pension and your super — moneysmart.gov.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.