How Much Age Pension Will I Get at 67? A Day-One Retiree's Worked Example
If you were born on or after 1 January 1957, your Age Pension qualifying age is 67 — and the most a single homeowner can receive is $1,200.90 a fortnight (about $31,223 a year) from 20 March 2026. But almost nobody gets the maximum on day one. Your actual payment depends on the income and assets tests, and for most new retirees the deeming of their super balance is what trims it back.
This guide walks through the exact arithmetic Services Australia uses, with a fully worked example for a typical day-one retiree: a 67-year-old single homeowner with $300,000 in super and $20,000 in the bank. We'll show you why she lands on a part pension, how much, and — just as important — why claiming a week late could cost her real money she can never get back.
First: are you even 67 yet?
Since 1 July 2023, the Age Pension qualifying age has been 67 for everyone born on or after 1 January 1957. There is no longer a sliding scale and no difference between men and women — if you reach your 67th birthday, you meet the age test. (The age crept up in six-month steps from 65 between 2017 and 2023; that transition is now complete.) You also need to meet residence rules — generally 10 years of Australian residence, with at least one continuous five-year period — and pass the means tests below.
You can lodge a claim up to 13 weeks before your 67th birthday so that payment is ready to start on your birthday. Miss that window and lodge late, and you lose every dollar of pension for the gap between your birthday and your claim date — see the back-pay trap further down.
How the maximum rate is built (single, from 20 March 2026)
The "Age Pension" you hear quoted is actually three components stacked together. For a single person, the maximum fortnightly rate from 20 March 2026 is:
| Component | Per fortnight (single) |
|---|---|
| Maximum basic rate | $1,100.30 |
| Maximum Pension Supplement | $86.50 |
| Energy Supplement | $14.10 |
| Total maximum rate | $1,200.90 (≈ $31,223/yr) |
Rates are indexed every 20 March and 20 September, so the figures above apply for the 20 March – 19 September 2026 period. The full couple rate (combined) over the same period is $1,810.40 a fortnight. Source: Services Australia — How much Age Pension you can get.
The two tests — and the rule that catches everyone
Services Australia runs your situation through both an income test and an assets test, then pays you whichever produces the lower pension. You don't get to pick the friendlier one. For a new retiree with super, the income test usually bites first — because of deeming.
Deeming, in one sentence
Deeming means Centrelink ignores what your money actually earns and instead assumes a set rate of return on your "financial assets" (bank accounts, term deposits, shares, managed funds, and — this is the part people miss — your account-based super pension once you've reached Age Pension age). The deemed amount is counted as income. From 20 March 2026 the rates are 1.25% on the first slice and 3.25% above it; for a single person the threshold sits at $64,200. Source: Services Australia — Deeming.
While you're still under 67, your super in accumulation phase is not counted by Centrelink. The day you hit Age Pension age, the entire balance becomes an assessable financial asset and gets deemed — whether it's earning 1% or 8% in the market. There's no "first $X exempt" carve-out for super itself; deeming applies to the full balance.
Worked example: Sandra, 67, single homeowner
Sandra turns 67 on 1 July 2026. She owns her home in Geelong outright, has $300,000 in an account-based super pension and $20,000 in a savings account. No other income, no other assets that count. She lodges her claim a fortnight before her birthday, so payment is ready to start on day one.
Step 1 — Total her financial assets.
$300,000 (super) + $20,000 (savings) = $320,000. Both are deemed; her home is exempt.
Step 2 — Apply deeming (the income test).
First $64,200 × 1.25% = $802.50/yr
Remaining $255,800 × 3.25% = $8,313.50/yr
Total deemed income = $9,116/yr = $350.62 a fortnight ($9,116 ÷ 26.0893)
Step 3 — Run the income test.
The single income free area is $218 a fortnight. Sandra's deemed income of $350.62 exceeds it by $132.62. The pension reduces by 50c per dollar over the free area:
$132.62 × 0.50 = $66.31 reduction
Pension under income test = $1,200.90 − $66.31 = $1,134.59 a fortnight
Step 4 — Run the assets test.
A single homeowner keeps the full pension while assessable assets stay under $321,500. Sandra's $320,000 is just under that line, so the assets test on its own would pay her the full $1,200.90.
Step 5 — Pay the lower of the two.
Income test = $1,134.59. Assets test = $1,200.90. Centrelink pays the lower figure, so Sandra receives a part pension of about $1,134.59 a fortnight — roughly $29,500 a year — driven by the income (deeming) test, not the assets test.
Full vs part pension at a glance
| Scenario | Financial assets | Fortnightly pension | Why |
|---|---|---|---|
| Full pension | ≈ $0 deemed above the free area | $1,200.90 | Deemed income under $218/ft |
| Sandra (our example) | $320,000 | ≈ $1,134.59 | Income test, deeming over free area |
| No pension (single homeowner) | over $722,000 assets, or income over $2,619.80/ft | $0 | Above the cut-off on either test |
The income cut-off point for a single is $2,619.80 a fortnight, and the assets cut-off for a single homeowner is $722,000. Above the lower assets threshold the pension falls $3 a fortnight for every $1,000 of extra assets. Sources: Income test and Assets test, Services Australia.
The back-pay trap: claim late and the gap is gone forever
This is the single most expensive mistake new retirees make. The Age Pension is backdated only to the date you lodge your claim (or the date you became eligible, whichever is later) — never earlier. There is no back-pay for the stretch between your 67th birthday and the day Services Australia receives your claim.
Say Sandra had drifted and lodged three months after her birthday. Her pension would start from the lodgement date, not 1 July. At roughly $1,134.59 a fortnight, three months (about 6.5 fortnights) of foregone pension is roughly $7,400 she can never claim back. The fix costs nothing: lodge within the 13-week pre-birthday window so payment begins on day one. Source: Services Australia — How to claim Age Pension.
- 67 is the line. Born on/after 1 January 1957, your qualifying age is 67 — no exceptions, no gender difference.
- The maximum single rate is $1,200.90/ft (basic + pension supplement + energy supplement) from 20 March 2026 — but most new retirees get a part pension.
- Deeming, not your real returns, drives the income test. The day you turn 67, your whole super balance becomes a deemed financial asset.
- Centrelink pays the lower of the income and assets tests. For Sandra ($300k super + $20k savings) that's the income test → about $1,134.59/ft.
- Lodge within 13 weeks before your birthday. There's no back-pay before your claim date — claim late and that money is gone.
Is the Age Pension age really 67 for me?
Yes, if you were born on or after 1 January 1957. The qualifying age reached 67 on 1 July 2023 and applies equally to men and women. If you were born before that date you may have qualified earlier under the old transitional scale, but for anyone retiring now, 67 is the number. See Services Australia — Who can get Age Pension.
Why doesn't a single homeowner with $320,000 get the full pension?
Because the income (deeming) test bites before the assets test does. $320,000 of financial assets is deemed to produce about $350.62 a fortnight of income — over the $218 free area — which trims the pension by 50c per dollar of the excess. The assets test alone would still pay the full rate, but Centrelink always pays the lower of the two results.
Is my super counted before I turn 67?
Generally no. While super is in accumulation phase and you're under Age Pension age, Centrelink doesn't count it. Once you reach 67, the full balance becomes an assessable financial asset and is deemed under the income test — regardless of what it actually earns. This is why many people see their pension calculation change the moment they hit qualifying age.
What happens to the pension I "missed" if I claim after my birthday?
It's lost. The Age Pension is backdated only to your claim lodgement date (or eligibility date if later), never before. There is no back-pay for the period between turning 67 and lodging. Always lodge within the 13-week window before your birthday so payment starts on day one.
How often do the rates change?
Twice a year — on 20 March and 20 September — when payments are indexed. The deeming rates and means-test thresholds can also change at those dates or by government decision (the deeming rates rose on 20 March 2026). Always confirm the current figures on Services Australia before relying on them.
Could I get more pension by spending or restructuring my money?
Sometimes the maths changes if assets are held differently (for example, certain annuities or gifting within the allowed limits), but the rules are intricate and getting it wrong can backfire. This article is general information, not personal advice — speak to a licensed financial adviser or Services Australia's Financial Information Service before making changes.
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