During retirement, many people rely on a combination of their superannuation savings and their age pension to sustain them moving forward financially. Accordingly, a front-of-mind issue for individuals is at what point do the superannuation savings and payments impact your eligibility for the age pension? 

While someone is under age pension age, concerning any Centrelink payment, Centrelink does not count your or your partner’s superannuation balance in the income or assets test if your fund is not paying you a superannuation pension. However, that pension is considered if your fund pays you a superannuation pension. 

Once you reach age pension age, Centrelink counts your super (a) in the assets test and (b) in the income test under the deeming rules. The same rules apply to your partner and their super when they are age pension age, even if they are not receiving a Centrelink payment. 

Deeming is a set of rules determining the income your financial assets create. It assumes these assets earn a set rate of income, no matter what they earn. The main types of financial assets are: 

• savings accounts and term deposits 
• managed investments, loans and debentures 
• listed shares and securities 
• some income streams 
• some gifts you make. 

Centrelink includes any deemed income as your income under the income test. The income test helps Centrelink determine how much income support it can pay you. Taking money out of superannuation doesn’t affect your Centrelink payments, but you may be impacted by the deeming rules (see earlier) depending on where that money is invested outside super. 



Recent research into retirement confidence by Monash University found that people aged 50 and over – who take time to understand and plan their finances – are less anxious about transitioning into retirement. It found that they were more confident overall about their retirement options. Knowing how much of the age pension you could be eligible for can help you understand your finances in retirement.