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How much can I have in the bank before my Age Pension is cut?

It would have to be the most common question we receive. The answer can’t be summarised in a few sentences, instead, we’ll attempt to explain some of the inputs in calculating an Age Pension entitlement in this article.

For starters, the Age Pension is calculated using the Income and Asset tests. If your assessable income or assets exceed either tests upper threshold, you will not receive a payment. To receive the maximum Age Pension payment, your income and assets must be below the lower threshold for both tests.

The thresholds vary depending on your relationship and homeowner status as outlined below.

Homeowner and Relationship StatusIncome Lower ThresholdIncome Upper ThresholdAsset Lower ThresholdAsset Upper Threshold
Single homeowner$5,304$60,632$301,750$656,500
Single non-homeowner$5,304$60,632$543,750$898,500
Couple homeowner$9,360$92,768$451,500$986,500
Couple non-homeowner$9,360$92,768$693,500$1,228,500

Please note that these thresholds are accurate as at 1 July 2023 and are subject to change.

Money in the bank is one of the many components used to calculate your payment. Not only is it assessed as an asset, it is also deemed to earn income to calculate your entitlement under the income means test. For this reason it is challenging to say an exact figure one can have in the bank without impacting their Age Pension because other factors are at play.

As a practical example, John is a single homeowner with $5,000 of assessable income and $700,000 of assessable assets. Applying the rates outlined in the chart above, he is under the income threshold to receive the maximum Age Pension, however, his assets are above the upper threshold meaning he is precluded from a payment.

To receive any payment, John will need to have assessable assets under $656,500 and assessable income under $60,632. To receive the maximum Age Pension payment, John must have less than $301,750 of assets and under $5,304 of income.

To further entertain the question, assuming a single homeowner has no other assets (not even a car) or income apart from money in the bank, they may be able to have up to approximately $269,689 in the bank before their Age Pension reduces from the maximum rate. This is a rough estimate and should not be considered as official advice. The actual amount can vary depending on individual circumstances.

It is essential to consult Services Australia or speak with a financial adviser to obtain the most up-to-date information for your specific circumstances.

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  1. Carmel Modica on October 3, 2023 at 9:11 am

    I’m in need of advice regarding Centrelink and a possible disability pension but I have an investment property. What are my options?

    • The Muirfield Team on October 17, 2023 at 2:40 pm

      Hi Carmel, thanks for your inquiry. So we can better direct you for help, can you please elaborate on what you need help with in relation to your possible Disability Pension?

      Alternatively, please call our office on 03 5224 2700.

      All the best.


  2. Helen Dresen on April 9, 2024 at 9:20 am

    I’m in need of advice , I will be eligible for the aged pension in May , but I own a property with my sister and brother in law , which i am looking at them buying me out of my third of the property, within the next 12 months.
    Once they have bought me out of my third of the property, I will be buying a granny flat to put on my daughter’s property, will this affect my aged pension?

    • The Muirfield Team on April 9, 2024 at 4:12 pm

      Hi Helen, thank you for the question.

      The response you seek extends beyond the scope of this forum given your inquiry encompasses several aspects.

      However, it’s worth noting that you may possess one principal residence exempt from Centrelink means test assessment.

      Establishing a granny flat interest on your daughter’s property might fall under these regulations.

      I hope this helps.

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