How Much Money Can a Pensioner Have in the Bank?

The short answer: there is no fixed limit🔗

There is no magic number above which a pensioner is automatically cut off. The means test is made up of two separate tests that run at the same time. The assets test looks at the total value of what you own, excluding your family home. The income test looks at the income you receive, including deemed income from your financial assets. Centrelink calculates your pension under each and pays whichever result is lower. So even with modest assets, high income (or high deemed income from savings) could still reduce your pension. For the payment basics, see our guide to the Age Pension.

How the Age Pension assets test works🔗

The assets test measures your assessable assets. Below the full-pension threshold, you get the full pension (subject to the income test). Between the full-pension threshold and the cut-off, you get a reduced part pension. Above the cut-off, you get no pension under the assets test. Two things move your threshold: whether you own your home (homeowners have lower thresholds, because the exempt home is itself wealth) and whether you are single or a couple.

These figures are indicative and reviewed in March, July and September each year, so always check current amounts at Services Australia.

The taper rate: how your pension reduces🔗

If your assessable assets sit between the full-pension threshold and the cut-off, your pension reduces by the taper rate: $3 per fortnight for every $1,000 of assets above the full-pension threshold(about $78 a year per $1,000). For example, a single homeowner with $433,000 in assets is $100,000 over the $333,000 threshold, which is 100 lots of $1,000, so $300 less per fortnight than the full pension. That is still a meaningful payment, and a part pension is worth claiming because even a small amount unlocks the Pensioner Concession Card and its discounts on medicines, utilities and transport.

The income test and deeming: what happens to your bank balance🔗

Under the income test, money in the bank is not assessed on what it actually earns. Instead it is assessed using deeming: the government assumes your financial assets earn a set rate, regardless of the real interest. Even a 0.5% savings account is deemed at the standard rate.

Indicative deeming rates (as at 1 July 2026): 1.25% on the first $66,800 of financial assets for a single (or $110,600 for a couple), and 3.25% above that. For a single pensioner with $100,000 in the bank, that is roughly $835 deemed on the first $66,800 plus about $1,079 on the remaining $33,200, or around $1,914 a year (about $73.60 a fortnight) counted as income. Deeming rates and thresholds also change, so check current figures with Services Australia.

What counts as an asset (and what does not)🔗

Counted: bank accounts, term deposits and cash; shares, managed funds and bonds; super once you reach Age Pension age; investment properties; cars, boats and caravans; household contents at second-hand value; business assets; and money you have lent to others.

Not counted: your principal residence (the big one), generally up to two hectares of land on the same title, some pre-paid funerals and funeral bonds within limits, certain aged care costs, and super if you are under Age Pension age. Even though the home is exempt, homeowners still get lower thresholds, because the home represents wealth.

Gifting rules: you cannot give it all away🔗

You cannot simply give money away to get under the threshold without consequences. You can gift up to $10,000 per financial year, and no more than $30,000 over any rolling five-year period, without it affecting your pension. Anything above those limits is still counted as an assessable asset for five years from the date of the gift, and is also subject to deeming during that time. Selling assets for less than their market value counts as a gift too, and you must report gifts to Services Australia. The rules apply equally to singles and couples, and Centrelink does investigate.

Practical tips and where to get help🔗

• Check your situation with Services Australia via myGov, by phone, or in person. The Payment Finder tool can estimate your entitlement.
• Use the free Financial Information Service (FIS). FIS officers explain how the rules apply to you (they cannot give personal advice, but they can help you understand your options).
• Do not try to hide assets or over-gift. Excess gifts are counted for five years, and the risks are not worth it.
• A part pension is still worth having for the concession card benefits alone.
• Report changes promptly. A change in assets, income or living situation can affect your entitlement, and failing to report can create overpayments to repay.
• Consider licensed advice. An adviser who specialises in retirement and Centrelink strategies can help you plan legally and ethically. You may also qualify for the Commonwealth Seniors Health Card if you do not get the pension.

❓ Frequently asked questions🔗

Keep reading🔗

• The Age Pension explained
• The Pensioner Concession Card
• Commonwealth Seniors Health Card
• How much super do you need to retire?