Retirement planning doesn't stop once you finish working. From managing your investments to helping family members financially, the decisions you make can have an impact on your Age Pension entitlement. Here's what to keep in mind when reviewing your financial position.
For many Australians, retirement is about making the most of the wealth they've worked hard to build. Whether that means travelling, enjoying more time with family or helping the next generation get ahead, having a clear financial strategy can make all the difference.
But if you're approaching Age Pension age, or already receiving a payment, it's worth understanding how Centrelink assesses your financial position.
With updated Age Pension thresholds and rates taking effect from 20 September 2026, here are five things worth reviewing.
1. Don't overlook how your investments are assessed
Your investment portfolio might be performing well, but have you considered how it affects your Age Pension?
Centrelink uses a system called deeming to calculate the income generated by financial assets. Rather than looking at the actual return on your investments, it applies an assumed rate of return.
From 20 September 2026, the deeming rates are 1.75% on the first $66,800 of financial assets for singles and 3.75% on amounts above this. For couples receiving a pension, the lower rate applies to the first $110,600 in combined financial assets.
Our tip: When reviewing your investment strategy, consider both the returns you're generating and how your investments are assessed under the Age Pension income test. Your actual investment income and your assessable income aren't necessarily the same.
2. Understand what Centrelink considers an asset
Not everything you own is treated equally when it comes to the Age Pension.
Your principal home is generally exempt from the assets test, which can make a significant difference to your entitlement. However, other assets, including investment properties, shares, savings, vehicles and superannuation (once you're of Age Pension age), may be included.
The thresholds also differ between homeowners and non-homeowners.
From September 2026, a single homeowner can have up to $333,000 in assessable assets to qualify for the full pension, compared with $600,000 for a non-homeowner.
Our tip: Take the time to understand how your assets are structured and assessed. If you have multiple investments, property holdings or other financial interests, it's worth reviewing how they contribute to your overall position.
3. Think before gifting money to family
Helping children or grandchildren financially is something many retirees want to do. Whether it's contributing towards a property deposit, helping with education costs or providing a financial gift, it's important to understand the potential implications.
Centrelink currently allows you to gift up to $10,000 in one financial year, with a maximum of $30,000 over five financial years.
Anything above these limits can continue to be counted as an asset and assessed under the income test for five years.
It's also worth remembering that gifting isn't limited to cash. Transferring property, selling an asset below market value or forgiving a debt can also fall under the gifting rules.
Our tip: If you're planning to transfer wealth to the next generation, consider the timing and potential impact on your retirement income before making any commitments. Good estate and retirement planning should work together.
4. Consider the financial implications of downsizing
Selling the family home and moving into something smaller can be an attractive option in retirement. It may free up capital, reduce maintenance and give you more flexibility.
However, it's important to understand how the proceeds from selling your home may affect your Age Pension.
While your principal residence is generally exempt from the assets test, the proceeds from its sale may become assessable assets. There are exemptions available in certain circumstances if you're intending to purchase another home, but specific timeframes and conditions apply.
Our tip: Before committing to a property sale, consider the bigger financial picture. Look at how the move could affect your Age Pension, investment position, cash flow and longer-term retirement plans.
5. Review your position regularly
One of the biggest mistakes retirees can make is assuming their Age Pension entitlement will stay the same.
Changes to investment values, interest income, property ownership and personal circumstances can all affect how Centrelink assesses your position. Pension thresholds and payment rates are also indexed regularly.
Remember, Centrelink applies both an income test and an assets test, using whichever produces the lower pension entitlement.
Our tip: Make reviewing your retirement finances an ongoing part of your financial planning. Even if your circumstances haven't changed significantly, it's worth checking that your assets, income and Centrelink information remain up to date.
Making the most of your retirement finances
Building wealth is one thing. Making sure it continues to work for you throughout retirement is another.
The Age Pension is just one part of the equation. Your superannuation, investments, property, estate planning and tax position should all be considered together when making decisions about your financial future.
At Maher Group, our financial planning team works with clients to help them understand their options, manage their wealth and make informed decisions at every stage of retirement.
If it's been a while since you've reviewed your retirement strategy, now could be a good time to start a conversation.
Speak with the Maher Group team about your financial planning needs.