You can earn income and still get the Age Pension, but it reduces your payment; as of late 2025, singles can earn up to $2,575.40 per fortnight (around $66,960/year) and couples combined up to $3,934.00 per fortnight (around $102,284/year) for a part pension, with higher limits for those receiving Rent Assistance, and a Work Bonus allows eligible pensioners to earn up to $300 per fortnight from work without it counting towards the test.
How much income can I have and still get the Age Pension? If you're single, you can earn up to $2,575.40 per fortnight and still receive a part pension. Couples can earn up to $3,934.00 combined. Transitional rate pensioners and those living apart due to ill health may have higher thresholds.
What's Changing From 10 January 2026
Yes, you can – and any money you earn won't affect your State Pension. However, there are some things you should bear in mind: Any money you earn won't affect your State Pension, but it may affect your entitlement to other benefits such as Pension Credit, Housing Benefit and Council Tax Support.
Some pensions, typically government funded plan, may place a limit on other earnings while receiving a pension. Most typical private pension plan don't have those types of restrictions and allow you to work and earn all you want while still receiving the pension benefits.
If you plan to work for a different employer, there are generally no limits on how much you can work. You can work full-time or part-time if you wish. However, if you plan to return to your past employer, you may have limited work options while still collecting the pension.
The basic State Pension is currently £137.60 per week. This amount goes up each year. If you can get it, the full new State Pension amount is £179.60 a week. The money you may be able to get could be lower.
You may inherit part of or all of your partner's extra State Pension or lump sum if: they died while they were deferring their State Pension (before claiming) or they had started claiming it after deferring. they reached State Pension age before 6 April 2016. you were married or in the civil partnership when they died.
Delay the start date of your retirement
For every nine weeks that you defer getting your state pension, the amount you get increases by the equivalent of 1 per cent. So, defer for a year and your state pension income will increase by just under 5.8 per cent. That's an extra £13.35 a week or £694.20 a year for life.
People of pension age can have up to £10,000 savings in the bank before it affects their pension credit. So if you have savings over £10,000, it will start to count towards your income calculation. Every £500 over £10,000 will be calculated as £1 additional income per week.
Yes, pensioners receiving payments from Centrelink (Services Australia) generally need to report income and changes in circumstances, especially employment income, even if it's zero, to ensure correct payment, with reporting often required fortnightly through myGov or the app, even if there's no income to report. Failing to report income or significant changes (like assets, address, or living situation) can lead to overpayments and debts, while reporting late might delay payments.
Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.
Any earnings from part-time employment may affect Age Pension entitlements you're eligible to receive. The amount of Age Pension you receive is determined by Centrelink applying an income and assets test. If you receive earnings from part-time employment, these are generally included under the Centrelink income test.
You can have significant savings before losing your Australian Age Pension, with limits depending on whether you own your home and your relationship status, such as a single homeowner having up to $321,500 in assets for a full pension, while non-homeowners have higher limits, and a part pension is available with even more assets, up to around $700k-$900k before payments stop. The key is that your assessable assets (excluding your primary home) reduce your pension by $3 for every $1,000 over the lower threshold, but you can still get a part pension with much higher assets.
It is possible to retire early at age 55, but most people are not eligible for Social Security retirement benefits until they're 62, and typically people must wait until age 59 ½ to make penalty-free withdrawals from 401(k)s or other retirement accounts.
One benchmark is the “6% Rule”: if your annual pension payout equals 6% or more of the lump sum value, the annuity may be more competitive. If the rate is lower, investing the lump sum could offer greater potential.
From 20 September 2025, several changes will take effect for people who receive the Age Pension. These include increases to the maximum payment amounts, adjustments to income and asset thresholds, and a rise in deeming rates. This marks the end of the frozen period on deeming rates.
What's in this guide
“Drawdown” or untouched pension pot
Either of these means you can pass on your pension to your children or other beneficiaries – these don't necessarily have to be relations, either. They can receive the money either as an income or a lump sum. There are tax differences depending on the age you pass away.
Social Security death benefits, often referred to as survivor benefits, are available to a widow(er), divorced widow(er), or dependent child of a deceased worker. These benefits are typically based on the deceased spouse's primary insurance amount (PIA), not the benefits they were receiving at death.
When your spouse dies, avoid making major financial/life decisions (like selling the house or giving away heirlooms), telling certain companies (banks, utilities) too soon (consult an attorney first!), giving in to pressure from family, suppressing your grief (express feelings), and rushing to cancel subscriptions or services until you understand the estate's legal implications. Focus on self-care, seek support (counseling), and get professional legal/financial advice before acting on major issues.
To receive the new State Pension in full, you must have made 35 years of qualifying NI contributions - but to get the basic State Pension you need only 30 years' worth.
Which Countries Have the Most Sustainable Pension Systems? Iceland, Denmark, and the Netherlands have the most financially sustainable pension systems due to well-balanced contribution rates and participation.
A common starting point is to estimate that you'll need about 70% to 80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earn $150,000 annually while working, you might need between $105,000 to $120,000 as a starting point in retirement.