As of late 2025, the full Australian Age Pension provides up to $1,178.70 per fortnight for a single person and $1,777.00 per fortnight for a couple (combined), including supplements, though actual amounts depend on income and asset tests, with maximums around $1,079.70 basic rate plus supplements. Eligibility requires meeting asset thresholds (e.g., ~$321k assets for homeowner single) and income limits (e.g., under $218/fortnight for full single pension), with rates subject to change.
Key takeaways
How much you get depends on your income and assets tests, and whether you're single or in a couple. The current maximum Age Pension for: singles is $1,079.70 a fortnight or $28,072.20 a year. couples is $1,627.80 a fortnight or $42,322.80 a year (combined)
What's Changing From 10 January 2026
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.
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.
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.
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.
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.
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.
You usually need 35 qualifying years of National Insurance contributions to get the full amount. You'll still get something if you have at least 10 qualifying years - these can be before or after April 2016.
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.
$500,000 in Australian retirement can last anywhere from 10-15 years for high spending ($40k-$50k/yr) to 20+ years if supplemented by the Age Pension and lower spending ($30k/yr), depending heavily on your age, lifestyle, investment returns (3-7% p.a. for 10-20 years), and if you qualify for the Age Pension. Expect 10-13 years at $50k/year or 17-20 years at $30k/year if you're 60, but combining it with the Age Pension at 65+ significantly extends its life, potentially covering expenses until 90-95.
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.
Your home is not counted as an asset when calculating pension or payment, but it does affect how your pension or payment is assessed under the assets test. If you are a homeowner your asset value limit is lower than someone who does not own their residence.
Not Saving Enough
If there's one regret that rises above all others, it's this: not saving enough. In fact, a study from the Transamerica Center for Retirement Studies shows that 78% of retirees wish they had saved more.
LOUIS – Comfort, clarity, and control are the three C's that lead to a strong retirement plan. Marvin Mitchell, senior financial planner and president of Compass Retirement Solutions, said comfort is key because retirees shouldn't decrease their lifestyle. He suggests living comfortably with your means.
When asked when they plan to retire, most people say between 65 and 67. But according to a Gallup survey the average age that people actually retire is 61.
Fewer people have $1 million in retirement savings than commonly thought, with around 4.6% to 4.7% of U.S. households having $1 million or more in retirement accounts, according to recent Federal Reserve data (2022), though this percentage rises for older age groups, with about 9% of those aged 55-64 reaching that milestone. However, the median retirement savings are much lower (around $88,000-$200,000), showing a large gap between averages and reality, with many retirees having significantly less, notes.
Based on average life expectancy we explained that mathematically the client would be financially better off taking a higher pension over a lump sum. We took into account that the client had no pressing need for a large lump sum, such as paying off a mortgage or making significant gifts to her children.
The "3 rule retirement" typically refers to a conservative withdrawal strategy, like the 3% rule, suggesting you withdraw 3% of your savings in the first year and adjust for inflation, ensuring your money lasts longer, especially if retiring early or leaving an inheritance. Another concept is the Rule of Thirds, splitting savings into a guaranteed annuity (1/3), growth investments (1/3), and cash/emergencies (1/3), or the Three Buckets for managing cash flow (short, medium, long-term).
A wealthy retiree in Australia generally has over $1 million in investable assets (excluding the family home), but for a truly high-net-worth individual, this can extend to $5 million or much more, allowing for a very comfortable lifestyle with significant income, travel, and assets, well beyond the ASFA "comfortable" benchmark (around $595k single/$690k couple for basic needs) and often without relying on the Age Pension, notes.
Key Takeaways
The average retired household spends around $5,000 per month ($60,000 per year), with housing, healthcare, and food being the largest expense categories.
Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.