9 tips to maximise your Age Pension

What is the ‘taper rate’?

When it comes to the asset test, it’s important to take note of the ‘taper rate’. In simple terms, for every $1,000 in assets you hold above the asset limit for the full Age Pension, your pension payment drops by $3 per fortnight, or $78 annually, according to SimplyRetirement.

Understanding the taper rate can be key to working out how much more you may be able to pocket through the following strategies.

1. Value personal assets at their resale value

When it comes to the assets test, Centrelink doesn’t only consider financial assets such as superannuation or shares. Personal assets like home contents, jewellery, laptops, cars, boats, and caravans are also considered.

It can be easy to overestimate the value of these assets, especially after a lifetime of using their replacement value to organise home insurance cover.

But when you’re applying for the Age Pension, Centrelink is interested in the market value of personal assets. That means what your assets would be worth if you held a garage sale or were to sell them on eBay. Seen through this lens, the value of personal assets may be surprisingly low.

On top of that, personal assets tend to depreciate over time. If they do, it’s up to you to revise their value. It could pay to get into the habit of reassessing your assets’ values and reporting their current worth to Centrelink.

Potential boost: If you’re receiving a part-pension because your assets are over the cap, valuing your personal assets at, say, $10,000 instead of $20,000 could boost your pension by $30 a fortnight.

2. Declare any debts you’ve taken out to buy an asset

It’s not just assets that are considered as part of the asset test. Liabilities (debts) can also be recorded. If you took out a loan to buy an asset, that debt will be deducted from the asset’s value when you’re being means tested, according to Services Australia.

That means if you have an investment home loan, the asset test may consider the property’s value, minus the mortgage’s principal balance.

Potential boost: If you took out a $10,000 car loan to buy a $30,000 car, declaring both the asset and the debt could add an extra $30 to your fortnightly pension.

3. Don’t hesitate on home repairs or renovations

Plenty of retirees feel cash-strapped, and many may think their money is best left in the bank for a rainy day. However, forking out for home repairs or renovations could be beneficial in multiple ways.

Firstly, renovating or repairing your home can improve your quality of life, provide valuable savings on future upkeep expenses, or make the property more suitable for senior living.

Home improvements can also boost the value of your property, which could come in handy down the track.

Finally, the value of your home is exempt from the asset test. Meaning, if you have spare money in the bank dragging on your Age Pension, investing it in home improvements instead could boost your payment.

Potential boost: Using $25,000 of cash savings to upgrade your kitchen or bathroom or fix a leaking roof could add an extra $75 to your fortnightly pension.

4. Take advantage of gifting

Every penny counts in retirement, so why give money away? Beyond perhaps helping adult children into the property market or assisting a grandchild to pay uni fees, minimising their future HECS-HELP debt, gifting can also reduce assessable assets. This has the potential to provide an increase in Age Pension payments. But strict rules apply.

The amount you can gift without pension repercussions is capped at:

• $10,000 in one financial year, and
• $30,000 over five financial years

If you exceed these caps, Centrelink can count the excess in your assets test or apply deeming and assume you’ve earned income on the funds given away.

Potential boost: Gifting, say, $10,000 in one year, could raise your pension by $30 fortnightly.

5. Balance the super scales with a younger spouse

If there’s an age gap between you and your spouse or partner and you’re of Age Pension age, you may be able to shift some super from your fund to theirs and pocket an increased pension.

Centrelink treats superannuation differently depending on your age. Once you’re 67 years old, your super counts toward the asset test. But, if your spouse or partner is younger and their super is still in the accumulation phase, it’s generally exempt from the assets test.

But there are a few catches. The amount you can withdraw and recontribute to a spouse’s super fund is limited and there can be tax implications. Not to mention, that money might then be locked in their super fund until they meet a condition of release. If you’re considering shifting super between spouses for pension purposes, it’s best to get financial advice first.

Potential boost: If you could move, say, $20,000 out of your super and into the fund of a younger (below pension age) spouse, doing so could potentially offer a $60 uplift in fortnightly pension payments.

6. Lean into the Work Bonus Scheme

If money is tight, or you’re simply looking for something to whittle away longer days, you could consider making the most of the Work Bonus Scheme.

This is available to eligible pensioners who work, receive director’s fees, or actively participate in a business they own.

It can reduce your assessable employment income by up to $300 per fortnight, allowing you to earn extra pocket money without impacting your pension. If you earn less than $300 in a fortnight, the leftover amount is credited to your Work Bonus balance. This balance can start with an automatic $4,000 opening credit for new retirees and allows up to $11,800 to accrue, helping protect your regular pension from short-term income fluctuations.

Potential boost: If you earn $300 or less each fortnight, the Work Bonus may be able to protect your pension from being docked by a single cent. Without it, $300 of income could slice $37 a fortnight off a single person’s pension.

7. Prepay your own funeral

Few of us like to think of our own demise, but doing so may be able to put extra cash in your pocket today. Funeral costs paid in advance won’t count towards the assets test, unless they’re classed as ‘funeral bonds’.

According to Services Australia, funeral bonds, sometimes called funeral investments, are managed investments that provide interest, with the funds being paid out after your death.

If you purchase a funeral bond and don’t want it to count towards your asset test, ensure it’s assigned to a funeral director, it’s for prepaid funeral services, or you have a contract outlining the services that you’ve prepaid in full.

If you meet the above criteria, up to two funeral bonds can be exempt from your asset test, as long as you haven’t also prepaid funeral costs and the amount you invest in said bonds is less than the imposed threshold, which is updated annually. As of July 2026, it’s $16,250.

Potential boost: Prepaying $15,000 of funeral costs could feasibly lift your fortnightly pension by $45.

8. Rethink estate plans

When one spouse or partner passes away, the default financial outcome is often that ownership of everything is shifted to the other. While that can make emotional sense, it may also have financial consequences.

If one partner passes away, the surviving spouse transitions from a ‘couple’ asset threshold to a much tighter ‘single’ threshold. This may leave them on a part-pension or without the Age Pension entirely.

Leaving wealth to children, grandchildren, family members, or even community organisations or charities could help right-size the surviving spouse’s pension and offer support for those who need it more.

The catch: Before going down this path, it’s worth ensuring the surviving partner will be independently secure and able to afford a comfortable standard of living if their spouse were to die.

9. Tap into free advice

Professional financial advice can set you on the right track to make the most of your super and other assets while maximising pension payments.

If you need more information about the Age Pension, you can contact Centrelink on 132 300.