Retirement income
How does the Age Pension change my retirement plan?
For many Australian households, the Age Pension is not simply “full pension” or “nothing.” A part pension can materially change how long private savings need to last.
Why should the Age Pension be inside the projection?
Because eligibility changes as assessable assets and income change. Treating today’s entitlement as a permanent amount can overstate or understate retirement income for decades.
Both means tests matter
Services Australia applies an assets test and an income test, then uses the test that produces the lower payment. Homeowner status and whether you are single or partnered change the thresholds.
Your home is treated differently
The principal home is generally exempt from the assets test, while homeowners receive lower asset thresholds than non-homeowners. Investment property, cash, shares and super after Age Pension age are generally assessable.
Model the entitlement year by year
Drawdowns can reduce assessable assets, market growth can increase them, and a partner’s circumstances affect the household result. Recalculate the entitlement through the plan rather than adding one fixed pension estimate at age 67.
Test the decision with your numbers.
Start with the focused calculator, then use JettWorth’s full sandbox to see how the decision interacts with tax, super, property and the rest of your plan.
General information only. JettWorth provides scenario estimates, not personal financial advice. Tax, super and social-security rules change and individual circumstances matter.