• To access the Age Pension, you must meet three tests: age, residency, and either the income or assets test.
• Your family home is exempt from the assets test, but investment properties, shares, superannuation and other assets are counted.
• Many retirees are eligible for at least a part pension even with substantial savings, especially couples or homeowners.
• Careful planning around when and how you retire, how you draw down super, and what assets you hold can help maximise pension benefits.
• Using professional financial advice and regular eligibility reviews is especially useful for Newcastle and Hunter Region retirees to optimise super, investments and pensions.

What Is the Age Pension, and Who Qualifies?

The Age Pension is a government payment designed to support older Australians in retirement. To qualify you must:

• Be at least 67 years old.
• Be an Australian resident, typically for at least 10 years, with at least 5 years continuous residency required.
• Pass either the income test or the assets test. The test that results in the lower pension rate is applied.

Meeting age alone does not guarantee the Age Pension. Your income and assessable assets are also taken into account.

What Counts in the Assets and Income Tests?

Assets Test

Centrelink reviews many types of assets when assessing pension eligibility. These include investment properties, superannuation balances, bank accounts, shares and managed funds, vehicles, and other personal or financial assets.

One key advantage is that your primary home, where you live, is generally not counted under the assets test.

As a guide, the basic thresholds for the assets test are approximately:

Part pension may be available up to the cut off, above which Age Pension payments can cease.

Income Test

Assessable income includes employment income, superannuation pensions, rental income, investment returns and some other sources. If your income is high, this can reduce your pension even if your assets are within limits.

What This Means for Newcastle and Hunter Region Residents

Living costs, property values and lifestyle expectations across Newcastle and the Hunter Region vary, but some general rules apply:

• Home ownership helps: If you own and live in your home, it will not count against your assets test. Many retirees with moderate savings may still qualify for at least a part pension.
• Investment assets can reduce pension: Shares, investment properties, or larger super balances can count against you in the means tests. Planning how and when you access super can make a difference.
• Couples are assessed together: If you are part of a couple, both incomes and combined assets are assessed, so joint financial planning is important.
• Timing matters: Once you turn 67 you become age eligible. Working a bit longer, managing withdrawals and your asset mix carefully may improve Age Pension outcomes.

Smart Steps to Boost Your Pension Eligibility

Here are practical steps Newcastle locals can take as part of a wider retirement plan:

1. Review your asset mix
   If you hold shares, rental properties or other investments, review whether you need to keep them in the same structure once you reach pension age. Converting some investment assets into superannuation or downsizing can influence the assets test.
2. Use the rules to your advantage
   There are a few smart ways to improve your Age Pension outcome by structuring your finances sensibly within the rules. This can include paying down credit cards or other personal debts (which aren’t assessed by Centrelink), making use of the gifting rules where appropriate, or considering investments that receive favourable Centrelink treatment—such as lifetime superannuation accounts or income streams. These approaches won’t suit everyone, but understanding how the rules work can help you make more informed decisions. 
3. Use home ownership to your advantage
   Because your principal home is exempt from the assets test, owning and living in it can help pension eligibility. A modest home in Newcastle or the Hunter Region can be a significant advantage in this regard.
4. Consider government benefits beyond the Age Pension
   Associated benefits like the Pensioner Concession Card, healthcare and utility concessions and reduced state and local fees can improve quality of life.
5. Seek professional advice early
   Complex situations, such as income from superannuation or multiple investments, make Age Pension eligibility more involved. A financial planner can create a holistic strategy that coordinates super, investments and pension timing.

Common Pitfalls to Avoid

• Assuming you are eligible just because you turned 67. Income and assets still matter.
• Overlooking certain assets such as investment property, shares or bank accounts when estimating eligibility.
• Drawing down large amounts of super too early, which may reduce later pension payments.
• Failing to review pension eligibility after major life events such as selling property, receiving an inheritance or relationship changes.
• Missing out on concessions and related benefits because you are not aware of them.

Final Thoughts

If you are a Newcastle or Hunter Region resident approaching retirement, do not assume the Age Pension is out of reach. With careful planning, many retirees qualify for at least a part pension, even with savings or investments, especially if they own their home and structure their withdrawals thoughtfully.

A tailored approach that combines superannuation, savings and pension entitlements can help create a retirement that is both comfortable and financially secure.

Take the Next Step

If you would like clarity around your potential eligibility and how the Age Pension fits into your broader retirement plan, professional advice can make a real difference.

Book a free consultation or call (02) 4933 2364.