Super and the Age Pension

You can combine super and the Age Pension to support you at different stages of retirement.

How super and the Age Pension fit together

Many Australians use a mix of super and the Age Pension to pay for everyday living costs in retirement.

For some people, super is their main income once they retire. For others, it’s the Age Pension, and super can help top it up.

Your mix can change over time. For example, you might use more of your super early on, then become eligible for a part Age Pension later. You might also have other income, such as part-time or occasional work, savings or investments.

Two key ages in retirement: accessing super and the Age Pension

There are two different age milestones when it comes to retirement income:

• You can usually start using your super from age 60, depending on whether you’re still working or not – learn more about getting your super.
• Age Pension age is currently 67, if you’re eligible – check the Services Australia rules. You can apply for the Age Pension in the 13 weeks before reaching age 67.

Some people reduce their work hours or stop work before 67 and use super and other savings to help cover the gap. The Australian Taxation Office has more information on withdrawing and using your super.

Use our super and age pension calculator to help work out when you can access your super and apply for the Age Pension.

If you stop work before Age Pension age

If you stop working before Age Pension age, and meet certain conditions, you may be able to use your super (and other savings) as your main income at first, and check your Age Pension options later. Once you reach Age Pension age, you may qualify for a full or part Age Pension.

When you apply for the Age Pension, Services Australia uses a couple of tests to work out your payment – an assets test and an income test.

Will my super affect my Age Pension?

It can. It depends on your age and how you’re using your super.

• Once you’ve reached Age Pension age, your super (and payments you get from super) may affect Services Australia’s income test and assets test.
• Changes to your super, like starting regular payments or taking a lump sum, can affect how much Age Pension you may receive.
• If you’re unsure, check before you make a big change. Starting super payments, taking a lump sum, selling a home, making a big purchase, or giving money to family can affect how much Age Pension you may receive. You can talk to your super fund, or Services Australia can explain what’s counted in your situation.

Practical steps to plan your retirement income

Use these steps to get organised, then use the retirement planner to estimate your retirement income under different scenarios.

✅ Get a clear picture of your super. Check your balance, fees, insurance and investment option. Your fund can help with this. Log in to your MyGov account to see all your super in once place – you might even find super you didn’t know you had.

✅ Plan for the years before Age Pension age (if needed). Work out what income you’ll need and where it will come from.

✅ Get ready to check Age Pension eligibility. Make a simple list of your income and assets (including any super you’re using), and whether you’re single or have a partner, and your living arrangements, so you’re ready to check what you may qualify for.

Ways people combine super and the Age Pension

Scenario 1: ‘Super first, pension later’. Lena retires at 62 and uses her super for regular payments. She plans for the gap to Age Pension age by checking what her super needs to cover each month. At Age Pension age she checks her eligibility and later receives a part Age Pension, which helps her super last longer.

Scenario 2: ‘Pension plus a top-up’. Rob qualifies for the Age Pension. He draws a small amount from super to cover extras like bills, car costs or family travel, and keeps the withdrawals steady so his super lasts. He reviews it each year.

Scenario 3: ‘A changing mix’. Alex and Luke are a couple who use more of their super early in retirement. Later, their circumstances change and they reassess whether they can get a full or part Age Pension. Alex and Luke both qualify for a full Age Pension and decide to decrease how much of their super they use, to leave more for later.

The right approach for you depends on your goals, health, family situation and what you have saved.