Updated
The Age Pension is means-tested twice over, and that is the fact that governs any calculation. The income test reduces the payment by a set amount for each dollar of income above a free area, while the assets test reduces it by an amount for each block of assets above a threshold that differs for homeowners and non-homeowners; whichever test produces the lower payment is the one that applies. Superannuation counts under both, through deeming for the income test and at balance for the assets test, which is why a larger super balance can reduce the pension. This simulator applies both tests and shows which one binds. It does not model the family home, which is exempt from the assets test, nor the residence requirements that govern eligibility rather than amount.
Simulator Public Pension Australia
Estimate your Age Pension (means-tested) and project your Super Guarantee (12% mandatory employer contribution).
Your situation
Summary
Total retirement income
$7,048
per month (Age Pension + Super)
You currently earn
$5,542
net per month
Income shortfall
+$1,506
per month
In practice: On your gross salary of $95,000/yr ($7,917/mo), your employer contributes approximately $950/mo to Super (12% mandatory).
At age 67, with a projected Super balance of $1,762,110, you would receive approximately $7,048/mo, i.e. 127% of your current net salary.
Note: your Super balance and income exceed the means test thresholds. You are not eligible for the Age Pension with these parameters.
Age Pension / mo
$0
Total replacement rate: 89%
Projected Super
$1,762,110
Super annuity: $7,048/mo
Total monthly
$7,048
Age Pension + Super combined
Legal age
67 yrs
Min. 10 yrs residence
Your pension breakdown
Cumulative pensions paid
Frequently Asked Questions
Do I qualify for the Australian Age Pension?
How does the Age Pension means test work?
How much is the full Age Pension in 2026?
What is the Super Guarantee rate and how does it work?
Can I access my superannuation before retirement?
Simulateurs associés
Understanding Australian public pension
The Age Pension and the means test
The Age Pension is the old-age pension paid by the Australian government (Services Australia). Unlike many countries, it is not based on contributions but on a means test that assesses your income and assets.
- Maximum amount: ~1,237.70 AUD/fortnight (single) i.e. ~2,418 AUD/mo
- Eligibility: Minimum age 67, at least 10 years of residence in Australia (including 5 consecutive)
- Pro-rata: Between 10 and 35 years of residence, the pension is calculated on a pro-rata basis
- Indexation: Indexed twice a year based on the consumer price index or average weekly earnings (whichever is higher)
The Super Guarantee: how employer contributions work
The Superannuation Guarantee (SG) is the mandatory contribution that every Australian employer must pay into their employee's superannuation fund.
Current SG rate
12%
Of ordinary time earnings
Maximum Super Contribution Base
$67,708/quarter
Quarterly SG contribution cap
- Progressive: The SG rate increased from 9% (2013) to 12% on 1 July 2025
- Taxation: SG contributions are taxed at 15% within the super fund (concessional contributions)
- Average return: Australian super funds have delivered ~7% average annual return over 30 years
- Choice of fund: You can choose your super fund (stapled super fund since 2021)
Preservation age and access conditions
The preservation age is the minimum age at which you can access your superannuation. It depends on your date of birth.
Born after 1 July 1964
- Preservation age: 60 years
- Access to Super from age 60 if retired
- Unrestricted access at age 65 (even while working)
Release conditions
- Retirement: Having left employment after preservation age
- Transition to Retirement (TTR): Partial access from preservation age
- Age 65: Full access with no conditions
- Hardship: Early access in cases of severe financial hardship
Income test and Asset test in detail
The Age Pension is subject to a dual means test. The more restrictive test (resulting in the lower pension) applies.
Income test
- Threshold: 226 AUD/fortnight (single)
- Reduction: 0.50 AUD per dollar above the threshold
- Includes: employment income, super drawdown, financial income
- Deeming rules apply to financial assets
Asset test
- Homeowner threshold: $333,000 (single)
- Non-homeowner threshold: $543,750 (single)
- Reduction: 3 AUD/fortnight per 1,000 AUD above the threshold
- Includes: super, savings, investments (excl. principal residence)
Deeming rules: Financial assets are subject to deeming. The first 60,400 AUD is deemed to earn 0.25%, the remainder 2.25%. This deemed income is used for the income test, regardless of actual returns.
Recent Super reforms
The Australian retirement system has undergone several important reforms:
- Progressive SG (2021-2025): Gradual increase of the Super Guarantee from 9.5% to 12%. The rate has been 12% since 1 July 2025.
- Removal of the 450 AUD threshold (2022): Before 2022, employees earning less than 450 AUD/mo were not covered by the SG. This threshold has been removed.
- Stapled super fund (2021): The super fund now follows the employee from one job to the next to avoid multiple accounts.
- Payday super (2026): From 2026, employers will be required to pay SG with each pay cycle (instead of quarterly), improving transparency and returns.
- Transfer Balance Cap: Cap of $1,900,000 (2023-24) for the amount that can be transferred into a tax-free pension phase.
- Division 296 tax (proposed): Additional 15% tax on earnings for super balances exceeding 3 million AUD, currently under legislation.
Context: Australia has the 4th largest pension fund market in the world (~3,500 billion AUD in assets under management in 2024). The system is regularly ranked among the best in the world (Mercer Global Pension Index).