Pension Asset Test 2026: Limits, Exemptions & Calculator Guide

If you’re a retiree in Australia, one number can reshape your budget: the asset-test threshold for the Age Pension. With full-pension limits rising to $321,500 for single homeowners from March 2026, knowing exactly what counts — and what doesn’t — could mean the difference between a full pension and a partial one.

Full pension asset limit (single homeowner): $321,500 (Mar 2026) ·
Full pension asset limit (couple homeowner): $451,500 ·
Assets test taper rate: $3 per fortnight per $1,000 over limit ·
Super included in assessable assets: Yes, for those over Age Pension age ·
Primary residence exempt: Yes

The table below summarises the key asset test limits and rules.

How much can you have in assets and still get a pension?

Your assessable assets determine whether you receive a full Age Pension, a part pension, or none at all. The key thresholds for the 2025–26 financial year were set by Services Australia and updated each March. The pattern: homeowners get a lower threshold because they already have a place to live, while non-homeowners can hold more assets before affecting their pension.

Full pension asset limits for homeowners

• Single homeowner: $321,500
• Couple homeowner combined: $451,500

These limits apply from 20 March 2026, as confirmed by SuperGuide. If your total assessable assets – including savings, shares, and super – are below these figures, you qualify for the maximum single pension rate.

Part pension asset test thresholds

• Single homeowner: between $321,500 and $722,000
• Couple homeowner: between $451,500 and $1,085,000

Assets above the full-pension limit trigger a reduction of $3 per fortnight for every $1,000 over. For a single homeowner with $400,000 in assets (about $78,500 over), that means a pension cut of roughly $235 per fortnight.

How assets are assessed for couples and singles

Services Australia treats couples’ assets as a combined pool. The same thresholds apply whether you’re both eligible or one partner qualifies, though separated-illness cases use slightly higher part-pension caps (Services Australia). The pattern: ill-separated couples can hold more assets before losing the part pension – up to $1,282,500 for homeowners.

The implication: couples need to coordinate their asset holdings carefully, because one partner’s super balance can push the combined total over the limit.

What assets are exempt from the assets test?

Not everything you own counts toward the asset-test limit. The biggest exemption is your home, but there are others that can significantly lower your assessable assets.

Primary residence exemption

Your principal home is exempt provided the land does not exceed two hectares, according to Inspired Money. Any additional property – including a holiday home or investment property – is fully assessable at its current market value.

Assets that count: the full list

• Bank accounts and term deposits
• Shares, managed funds, and ETFs
• Superannuation once you reach Age Pension age
• Investment properties and vacant land
• Gifts over $10,000 in a single year (deprivation rules apply)

As Services Australia states, “We assess all asset types as part of the assets test.” The trade-off: reducing assessable assets – by, say, paying down debt or gifting within limits – can boost your pension eligibility.

The implication: understanding these exemptions can help retirees structure their assets to maximise pension eligibility.

Is super included in the pension asset test?

One of the most common questions: does super count? The answer depends on whether you’ve reached Age Pension age.

Super treatment for those under and over Age Pension age

• Under Age Pension age: Your super balance is not counted as an asset – even if you’ve retired.
• Over Age Pension age: Super is fully assessable, including balances in accumulation or pension phase.

According to Inspired Money, superannuation balances are included once you reach Age Pension age (currently 67). This means a retiree with $400,000 in super at age 68 will have that counted toward the asset test – potentially pushing them over the limit.

How super drawdown affects assessable assets

Drawing down super reduces your assessable assets, but each withdrawal counts as income under the income test. The interplay between the two tests is critical: you might pass the asset test but fail the income test, and vice versa. Services Australia uses whichever test gives the lower pension rate.

The pattern: retirees can deliberately draw down super to bring assets below the threshold, but must manage the income-test impact of those withdrawals.

The pattern: for many retirees, super is the largest asset and the main determinant of pension status.

How much money can you have in the bank and still get a full pension?

There is no separate limit for bank accounts. Your savings, term deposits, and cash are lumped together with all other assessable assets – super, shares, investment properties – and measured against the thresholds.

Bank account treatment in the assets test

• Every dollar in bank accounts or term deposits counts as an assessable asset.
• Joint accounts are split 50/50 for couples applying individually.
• Offset accounts linked to a mortgage are assessed as savings (not a reduction of the mortgage).

As Inspired Money notes, the assets test includes bank accounts and term deposits as assessable assets. So if you’re a single homeowner with $321,500 in super and another $50,000 in the bank, you’re already over the full-pension threshold – by $50,000.

Combined with other assets: total limit applies

The full pension limit applies to the sum of all assessable assets. For a single homeowner, that’s $321,500. For a couple homeowner, $451,500. The takeaway: you can’t keep a separate “bank account allowance” – every dollar counts toward the total.

What this means: every dollar in the bank counts towards the asset limit, so consider spending or gifting strategies.

What is the projected pension increase for 2026?

The Age Pension rate and asset test thresholds are indexed to the Consumer Price Index (CPI) every March and September. The March 2026 increase is not yet confirmed, but the pattern from previous years gives a reasonable expectation.

Indexation rules for Age Pension

• Rates are adjusted in March and September based on CPI movements.
• Asset test thresholds are also indexed at the same time.
• The increase is typically a few percentage points – often 2–4% per March adjustment.

According to Services Australia, the next indexation after March 2026 will be in September 2026, with exact figures announced about a month prior. Based on current inflation trends, a 3–4% increase would lift the single homeowner full-pension limit from $321,500 to roughly $331,000–$334,000.

Estimate of increase based on CPI

If CPI rises 3% over the year to December 2025, the March 2026 thresholds could increase by roughly $9,600 for single homeowners and $13,500 for couples. However, the exact percentage is not yet published, so these figures are projections, not guarantees.

The implication: retirees should plan for modest increases each year but not rely on large jumps. The asset test remains the binding constraint for many.

How to use the pension asset test to plan your retirement

A step-by-step approach can help you maximise your Age Pension entitlement while enjoying your savings.

1. Determine your homeownership status. Homeowners have lower limits but also have the principal residence exemption. Non-homeowners get higher thresholds.
2. Calculate your total assessable assets. Include super (if over Age Pension age), bank accounts, shares, investment properties, and any caravan or boat not used as a primary residence.
3. Compare to the latest thresholds. Use the March 2026 figures above or check Services Australia for the current values.
4. Use the Centrelink Age Pension calculator. The online estimator at myGov gives a pension estimate based on your assets and income.
5. Consider drawdown strategies. If you’re over the limit, drawing from super or selling an investment property may bring you under – but weigh the income test impact.

For most retirees, staying just under the full-pension limit is a smart target. The trade-off: drawing down assets faster than needed can erode your financial buffer, but earning a part pension may still be worthwhile.

For the typical Australian retiree, the pension asset test in 2026 is clear: if your assessable assets exceed $321,500 (single homeowner), you’ll receive a reduced pension – or lose it entirely at $722,000. The choice for those with assets above the full-pension limit is whether to spend down, restructure, or accept a part pension. For many, the smartest move is to stay under the full-pension threshold by shifting assets into exempt categories or drawing down super gradually, because every dollar over costs you $78 a year in lost pension.

Related reading: Retirement Age 2026: Ireland, UK Changes & Pension Rules

Frequently asked questions