Australia's Retirement Standard says couples with $730,000 in superannuation can afford a 'comfortable' retirement.
So, if you have $725,000 in super, you're pretty much where you need to be.
For singles, it takes $630,000 in superannuation to afford a comfortable retirement.
So, if you're single with $725,000 in super, you're in an even better position.
And here's some good news you may not expect.
In most cases, both couples and singles with $725,000 in superannuation still qualify for social security via the age pension.
Want to know how much pension you'd get?
Well, I'm so glad you asked.
Let's investigate how the assets and income tests determine how much pension you'd receive.
Superannuation applies to both pension tests
The full pension for eligible Aussies is $1,237.70 per fortnight for singles and $933 per partner, per fortnight, for couples.
Australians born on or after 1 January 1957 are eligible for the pension at 67 years of age.
Different monetary thresholds apply to both tests and hinge on marital status and whether you own your own home.
Your assets and income need to be under the thresholds for both tests.
Superannuation forms part of both tests.
Let's get into it.
Here's how the assets test works
The assets test incorporates almost everything you own, including your furniture and cars, and superannuation.
If you own a home, that asset is excluded.
In our example today, let's assume that in addition to $725,000 in super, you have an old car and home contents worth $20,000.
Your total for the assets test is $745,000.
Now let's look at the asset test rules.
- Single homeowners whose assets are worth less than $333,000 qualify for a full pension
- Single homeowners whose assets are worth $333,001 to $745,750 are eligible for a part-payment
- Non-homeowner singles whose assets are worth less than $600,000 qualify for the full pension
- Non-homeowner singles who have $600,001 to $1,012,750 in assets qualify for a part-pension
- Couple homeowners whose assets are worth less than $499,000 qualify for a full pension
- Couple homeowners who have $499,001 to $1,121,000 in assets qualify for a part-payment
- Non-homeowner couples whose assets are worth less than $766,000 qualify for the full payment
- Non-homeowner couples who have $766,001 to $1,388,000 in assets qualify for a part-pension
As you can see, both couples and singles with $725,000 in super (and $745,000 total assets) qualify for at least a part-pension.
Now let's do the income test.
Onto the pension income test…
You don't need to tell Centrelink how much your superannuation earned in dividends or other income each year.
Instead, Centrelink uses deeming rates to determine an assumed level of income based on the total value of your super.
Your car and home contents are not financial assets, so they aren't subject to deeming.
That means only your $725,000 in superannuation is relevant for the income test.
The lower deeming rate for the first $66,800 worth of assets for singles and $110,600 for couples is 1.75%.
Income above these amounts is deemed to have earned 3.75%.
So, on $725,000, your deemed income is $994 per fortnight ($25,852 annual) if single.
If you're a couple, your deemed income is $961 per fortnight ($24,976 annual).
Now let's look at the income test rules.
- Singles who are deemed to receive less than $226 per fortnight qualify for the full pension
- Singles who receive between $227 and $2,701.40 per fortnight qualify for a part-payment
- Couples who receive less than $396 per fortnight qualify for the full payment
- Couples who receive between $397 and $4,128 per fortnight qualify for a part-pension
As you can see, both singles and couples with $725,000 in superannuation qualify for a part-payment.
How much pension will you get?
Centrelink will apply whichever test entitles you to the least amount of pension.
Here are the results.
Single homeowners
Under the assets test, your age pension entitlement is $1.70 per fortnight.
Under the income test, your entitlement is $853.56.
Centrelink pays the lower of the two, so you'd get $1.70 per fortnight.
That's still worth claiming, because pensioners are entitled to an Australian Pensioner Concession Card (PCC).
The PCC can save you thousands every year on general cost-of-living expenses in retirement.
Single non-homeowners
Under the assets test, your age pension entitlement is $802.70.
Under the income test, your entitlement is $853.56.
So, you'd get $802.70.
Couple homeowners
Under the assets test, your age pension entitlement is $564 per partner, per fortnight, or $1,128 combined.
Under the income test, your entitlement is $791.85 per partner, per fortnight, or $1,583.70 combined.
So, you'd get $1,128.
Couple non-homeowners
Under the assets test, your age pension entitlement is $933 per partner, per fortnight, or $1,866 combined.
Under the income test, your entitlement is $791.85 per partner, per fortnight, or $1,583.70 combined.
So, you'd get $1,583.70.
The post Got $725,000 in superannuation? You can still get the pension. Here's how much appeared first on The Motley Fool Australia.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026