Will You Rely on the Age Pension?
For many Australians, the Age Pension remains a crucial part of retirement income.
How Many Rely on It?
- About 71% of Australians aged 65+ receive some Age Pension*
- 42% rely on it mainly
- Just one-quarter rely primarily on super
How the Means Test Works
- Income test – pension reduces once income exceeds limits
- Assets test – excludes the family home but counts other assets
What the Pension Covers
As at 2025:
- Single: about $29,000 per year
- Couple: about $43,000 per year**
This funds a modest lifestyle, below ASFA’s “comfortable” standard.
Final Thought
The Age Pension isn’t going away. For many retirees, it will remain a cornerstone – not a backup – of retirement income.
References
- Australian Bureau of Statistics (ABS). Retirement and Retirement Intentions, 2023–24.
** Services Australia. Age Pension Rates, 2025.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
