If you’re heading into retirement, you might have some big questions about how much you can own — whether it’s your home, savings, or investments — and still qualify for an age pension. Well, the rules are changing! Starting next week, new laws will make it easier for retirees to hold more assets while still being eligible for at least a part-pension. Here’s everything you need to know about how these changes could affect your retirement plans.
What’s Changing?
From March 20, 2026, the amount of assets you can own and still qualify for the age pension will rise, thanks to indexation adjustments. These changes are designed to help retirees keep up with inflation, making it easier for them to maintain their quality of life without losing their pension. For example, if you’re a single homeowner, you’ll now be able to own up to $722,000 in assets, up from $714,500, and still qualify for a part-pension. For single non-homeowners, the cap increases to $980,000, up from $972,500.
Couples who own a home will be able to hold $1,085,000 in assets, while non-homeowners can have up to $1,343,000, details Fool. This is great news for retirees who have worked hard and accumulated assets over the years but want to make sure they’re not penalized for it.
How Much Can You Earn While Still Getting a Pension?
It’s not just about assets; the new rules also increase how much you can earn while still qualifying for at least a part-pension. Single retirees can now earn up to $2,619.80 per fortnight (up from $2,575.40), while couples can earn up to $4,000.80 per fortnight (up from $3,934). So, if you have some side income from investments or part-time work, this new cap could help you keep more of your earnings without losing access to the pension.
Deeming Rates: What You Need to Know
Another big change is in the pensioner deeming rates. Deeming is the method used by the government to estimate the income from your assets, like savings or shares. The lower deeming rate is set to rise from 0.75% to 1.25% for assets under $64,200 for singles and $106,200 for couples. Meanwhile, the upper deeming rate will increase from 2.75% to 3.25% for assets above these amounts. These adjustments are meant to help better reflect current market conditions, which can make a difference in how much pension you’re entitled to.
The good news doesn’t stop there. The pension itself is also set to increase. Singles receiving the full age pension will get an extra $22.20 per fortnight, while couples will receive an additional $16.70 each. This may not sound like much, but over time, those extra dollars can add up. So, singles will now receive $1,200.90 per fortnight, while couples will get $905.20 per partner.
What Does This All Mean for You?
These changes are a step in the right direction for retirees, especially for those who have saved hard and want to continue enjoying their savings without being penalized. Whether you own your home, have rental properties, or hold investments, these updated asset and income thresholds could help you qualify for more support in retirement.
It’s important to stay informed about these changes, especially if you’re nearing retirement. If you’re unsure about how these adjustments might impact your situation, consider speaking with a financial advisor who can help you plan for a comfortable and secure retirement.
