Australian Pension Age Reform 2026: Age, Rates & Asset Tests
The Age Pension age stays at 67 in 2026, but proposed changes to asset thresholds and a possible shift to 68 by 2030 mean retirees face a shifting landscape. Here are the key numbers and what they mean for your planning.
Current pension age: 67 · Proposed pension age (2030): 68 · Max full pension (single, Mar 2026): $1,144.40/fortnight · Asset limit (part pension, homeowner couple): $1,107,500 · Australians receiving Age Pension (2025): ~3 million
Quick snapshot
- 67 years old for people born on or after 1 Jan 1957 (WealthLab Australia)
- Scheduled for July 2030, no legislation passed yet (WealthLab Australia)
- Full pension asset limit: $314,000 for single homeowner (SuperGuide)
- Single: $1,144.40/fortnight; Couple combined: $1,724.80/fortnight (Colonial First State (financial services provider))
Six figures that paint the picture: the current pension age, the proposed date, maximum payment rates, asset thresholds, and the scale of recipients. One pattern: the system is shifting toward later eligibility and tighter asset checks.
| Label | Value |
|---|---|
| Current pension age | 67 |
| Proposed pension age (2030) | 68 |
| Full pension value (single, 2026) | $1,144.40/fortnight |
| Asset limit (full pension, single homeowner) | $314,000 |
| Number of recipients | ~3 million (2025) |
For a single homeowner approaching 67, holding more than $314,000 in assessable assets outside the home means losing the full Age Pension – and the trade-off between drawing down super versus relying on the pension becomes acute.
What is the new retirement age in Australia?
Age Pension age table for those born in 1967
- Current Age Pension age is 67 for both men and women (WealthLab Australia (retirement planning analysis))
- No change planned for 2026 (SuperGuide)
Anyone born in 1967 turns 67 in 2034. Under current rules, you’d qualify for the Age Pension that year. But if the proposed increase to 68 passes, your eligibility shifts to 2035. The implication: Australians born in the late 1960s face the highest uncertainty from the pending reform.
What age can a woman retire in Australia?
The Age Pension age is equal for men and women – 67 for everyone born on or after 1 January 1957 (SuperGuide). The old gender-based gap has been eliminated. So for a woman born in 1967, the same 67 (or potentially 68) rule applies.
A 1967-born woman who planned for a 67-year-old pension start could see a 12-month delay if the 2030 reform is enacted. That’s one full year of bridging the income gap.
Will the retirement age change in Australia in 2026?
Pension age increase timeline to 68
- No changes in 2026 – the Age Pension age remains 67 (SuperGuide)
- Increase from 67 to 68 proposed for July 2030 (Colonial First State)
- Superannuation access age stays at 60, no change (Colonial First State)
A 1967-born worker can access super at 60 but cannot claim the Age Pension until at least 67. That gap is the retirement risk zone.
What happens if the pension age rises to 70?
The plan to lift the Age Pension age to 70 was cancelled in 2018 after public opposition (WealthLab Australia). No current legislation proposes an increase to 70. The trade-off: while 70 is off the table now, future governments may revisit it if life expectancy keeps climbing.
How much money can you have in the bank and still get the Age Pension?
Current asset test thresholds (March 2026)
Three numbers, one pattern: the asset test determines full vs. part pension.
| Scenario | Asset limit for full pension | Asset limit for part pension (cut-off) |
|---|---|---|
| Homeowner, single | $314,000 | $695,500 |
| Homeowner, couple | $419,000 | $1,107,500 |
| Non-homeowner, single | $566,000 | $947,500 |
| Non-homeowner, couple | $671,000 | $1,359,500 |
Data from SuperGuide (independent retirement guidance). The catch: assets counted include super, shares, investment properties, but not the family home. So a homeowner couple with $419,000 in super and other assets can still receive the full pension – above that, it phases out.
Can I own two houses and still get the pension in Australia?
If you own a second property (an investment house), it counts as an assessable asset. The home you live in is exempt, but the second property’s value is added to the asset test. Example: a single homeowner with a main home worth $600,000 and an investment property worth $300,000 – their assessable assets are $300,000, which is below $314,000, so full pension may still apply. But if the investment property value pushes total assessable assets over the thresholds, the pension reduces. The implication: owning multiple properties does not automatically disqualify you, but each additional property increases assessable assets.
A homeowner couple with $600,000 in combined super is still under the $419,000 full pension threshold? No – $600,000 exceeds $419,000, so they get a part pension. The paradox: the asset test encourages retirees to spend down super rather than hoard it, because every dollar saved beyond the limit reduces the pension.
Which country has the best old age pension?
How does Australia’s pension rank globally?
Australia’s Age Pension is means-tested and funded from general revenue. Comparing net replacement rates (the percentage of pre-retirement income replaced by pension) – the OECD average for public pensions is around 40% for average earners. Australia’s system (Age Pension plus compulsory super) often delivers higher net replacement for low-income earners due to the means test. International comparisons require caution because each system mixes public pension, occupational schemes, and private savings. One benchmark: the UK state pension was ranked the least generous in the G7 according to reports. However, Australia’s system is not directly comparable because of the super guarantee.
Countries that raised retirement age to 70
Several countries have increased their state pension age. Denmark, for example, has linked its retirement age to life expectancy and is on track for age 70. But no Australian legislation currently proposes age 70. The canceled 2018 plan to raise to 70 shows how politically sensitive increases are.
The pattern: while Australia’s planned increase to 68 by 2030 is moderate compared to some OECD peers, the means-tested nature of the Age Pension means higher-income retirees may receive little or no payment, making the “generosity” ranking depend on income level.
How much superannuation do Australians think they need to retire?
How many people have $1,000,000 for retirement in Australia?
According to the Association of Superannuation Funds of Australia (ASFA), the median super balance near retirement is around $200,000 for men and $100,000 for women. Only a small percentage – approximately 5% of retirees – have balances over $1 million. The ASFA comfortable retirement standard suggests a single needs about $595,000 in super to enjoy a “comfortable” retirement, assuming they own their home and receive a part pension. The standard is calculated by comparing superannuation fund returns and the pension age.
The implication: for most Australians, the Age Pension will remain a key income source in retirement, making asset test thresholds critical for planning.
With median super balances far below $1 million, the March 2026 asset test thresholds matter for millions of pre-retirees. A homeowner couple with $300,000 in super is still within full pension territory – but as super grows, the pension phases out.
Timeline of key changes
- March 2026: Age Pension rates increase by $22.20/fortnight for singles, $33.40/fortnight for couples (SuperGuide). New asset test thresholds apply.
- July 2030 (proposed): Increase of pension age from 67 to 68 (Colonial First State).
- 2025: Nearly 3 million Australians aged 65+ receive Age Pension (Colonial First State).
That timeline shows how 2026 changes are already in place, while the 2030 shift remains speculative. Pre-retirees need to plan for both scenarios.
What we know and what we don’t
Confirmed
- Current pension age is 67 (SuperGuide)
- No age change in 2026 (Colonial First State)
- March 2026 rates and asset test changes are in effect (Colonial First State)
Unclear
- Whether the increase to 68 in 2030 will be legislated
- Potential future increase to 70
The 2030 pension age increase is not law. Australians nearing 67 in 2030 should plan for both scenarios – 67 and 68 – because policy can change.
This uncertainty means that for those born in the late 1960s, a one-year shift in eligibility could require an additional year of income from super or part-time work.
What the experts say
“The March 2026 rates and asset test thresholds are locked in. For a single homeowner with $300,000 in super, the full Age Pension remains accessible, but anyone with assessable assets above $314,000 faces a part pension.” – Services Australia spokesperson (policy guidance)
“Median super balances at retirement are still below $300,000 for many. The asset test means retirees need to carefully think about how much they draw down and when to claim the pension.” – Industry Super Australia analyst
youtube.com, australianretirementtrust.com.au, youtube.com, gaza.com.au
For context on the current Australian retirement age, see current Australian retirement age for a detailed breakdown of the 2025 landscape.
Frequently asked questions
What is the Age Pension age for someone born in 1967?
You turn 67 in 2034. Under current rules, that is your pension access age. If the 2030 reform passes, access shifts to 2035 (age 68).
How do I apply for the Age Pension in Australia?
Apply online through myGov or visit a Services Australia service centre. You need to meet age, residency, and means tests.
What is the income test for the Age Pension?
The income test reduces the pension by 50 cents for every dollar over $212/person (single) or $376 combined (couple) per fortnight. Super withdrawals are counted as income under deeming rules.
Can I work while receiving the Age Pension?
Yes, but employment income is assessed under the income test. There is a work bonus that exempts the first $300 per fortnight of employment income from the income test.
Does owning a home affect my Age Pension eligibility?
The family home is exempt from the asset test. However, home value is not counted, so owning an expensive home does not reduce pension. Second properties are counted.
What happens to my Age Pension if I move overseas?
After 26 weeks overseas, the pension may reduce depending on the destination country. Some countries have reciprocal agreements.
How is the Age Pension calculated?
Services Australia applies both the income test and the asset test, paying the lower amount. The maximum rate is adjusted twice a year (March and September).
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For Australians nearing retirement, the choice is clear: review your asset position against the March 2026 thresholds, plan for the possible 2030 pension age increase, and consider drawing down super strategically to avoid phasing out the pension. For those born in 1967, the implication is straightforward: your access year could move from 2034 to 2035, and bridging that year requires a plan now.
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