For Australia's Age Pension, cash in the bank counts towards your total assets, and exceeding the asset test thresholds reduces or cancels your pension, with limits depending on whether you own your home, with homeowner singles limited to around $321,500 (and non-homeowners higher) for a full pension, and couples combined thresholds much higher, though figures change with inflation, so always check current Services Australia website.
An Australian aged pensioner can have varying amounts in the bank (assets) before their payment is affected, depending on their homeownership and relationship status, with limits for a full pension for a single homeowner around $321,500 and a non-homeowner around $579,500, while couples have higher limits, with thresholds increasing for those receiving a part pension. Assets like bank accounts, shares, and property (excluding your principal home) are assessed, and once these limits are exceeded, the pension reduces by $3 for every $1,000 over the threshold, with higher limits for receiving a part pension.
The amount of savings you have in the bank will also be taken into account. 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.
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.
What's Changing From 10 January 2026
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.
There isn't a savings limit for Pension Credit. However, if you have over £10,000 in savings, this will affect how much you receive. If you're a mixed-age couple (meaning only one of you is over State Pension age), you normally have to claim Universal Credit until you've both reached State Pension age.
How much money can I have in the bank before it affects my pension? It depends on your total assessable assets. For example, homeowner couples can have up to $481,500 in combined assets, including bank balances, before their pension is reduced.
To claim Universal Credit you must usually have no more than £16,000 in money, savings and investments as a single claimant or if you are living with a partner. If you have below £6,000 it will not affect your award.
To retire on $70,000 a year in Australia, you'll generally need a superannuation balance in the range of $1.1 million to $1.7 million, depending heavily on your age at retirement (older is better), lifestyle, and whether you own your home, with estimates often falling around $1.1 million for a later retirement (age 67) or over $1.4 million if retiring earlier (age 60) for a single person, says Canstar and Association of Superannuation Funds of Australia (ASFA). A simple calculation suggests needing $70,000 divided by a 4% withdrawal rate equals $1.75 million, but other factors like the Age Pension and investment returns significantly affect the total required.
No. The State Pension is not means‑tested. This means your savings do not affect whether you receive the State Pension or how much you get. However, many pensioners receive additional support on top of the State Pension.
Deposits over $10,000 are treated a little differently by banks because of a law called the Bank Secrecy Act. Under this law, when you make a cash deposit of $10,000 or more, the bank is required to file a Currency Transaction Report (CTR). The CTR needs to include: The name of the person who is making the deposit.
Banks, building societies and credit unions
up to £120,000 per eligible person, per bank, building society or credit union.
Technically, yes – but there are significant factors to weigh before pursuing this route. While spending down your super may reduce your assessable assets and potentially increase the Age Pension you're eligible for, it's crucial to consider how this could impact your financial security and lifestyle in retirement.
How much you can earn before Centrelink payments are affected depends on your specific payment (Age Pension, JobSeeker, Youth Allowance, etc.), your living situation (single/partnered, with/without children, homeowner/renter), and your assets, but generally, there's a threshold (e.g., around $218/fortnight for Age Pension, $528/fortnight for Austudy/Youth Allowance) where payments start reducing, often by 40-60 cents for each dollar earned over that amount, with specific rules for different payments like Work Bonus for seniors or Income Bank for students.
Centrelink does not monitor your bank accounts in real time. Access to detailed bank information is generally limited to investigations of suspected fraud.
Some benefits are affected by the amount of money you have in savings, such as cash in a savings account, or investments in shares. These benefits are called means-tested benefits. Find out more about which benefits are affected by savings or a lump sum payout, such as redundancy pay or compensation.
Per bank: Each separately chartered bank gives you a new $250,000 limit (different branches of the same bank do not count as separate banks) Per ownership category: Single accounts, joint accounts, retirement accounts, trusts and business accounts each get their own $250,000 limit.
Pensioners might need to pay tax on their interest if it's higher than their personal savings tax allowance. You'll need to declare any interest on your self-assessment tax return if you submit one.
Liquid Assets waiting period. If you have savings or other liquid assets over $5,499 you will have up to a maximum of 13 weeks to serve a Liquid Assets Waiting Period. That is, your first payment will be delayed.
You have savings or other money
If you or your partner have liquid assets over certain limits, you may have to wait 1 to 13 weeks. Liquid assets are any funds readily available to you or your partner. This includes money owed by your or your partner's employer. Read about liquid assets waiting periods.
If your savings are: under £6,000, your benefit claim is not affected by your savings. between £6,000 and £16,000, you lose some of your benefit payment. more than £16,000, you are not eligible.
Assets Test
A single homeowner can have up to $714,500 of assessable assets and receive a part pension – for a single non-homeowner the higher threshold is $972,500.
If you were contracted out of Additional State Pension during your working life – for example, you paid into certain workplace pensions instead – you'll get a reduced amount under the new State Pension. Contact the Pension Service for advice or read our factsheet Understanding your State Pension for more information.
The full rate of new State Pension is £230.25 a week. Your amount could be different depending on: if you were contracted out before 2016. the number of National Insurance qualifying years you have.