The Age Pension is one of the most talked about parts of retirement planning, though it is also one of the most misunderstood.
At Halpin Wealth, we regularly speak with people who assume they will not qualify, misunderstand how the rules work, or believe they need to structure their finances in a certain way to receive support.
“The Age Pension system is complex, and there are a lot of assumptions people carry into retirement,” says Sam Nunn, Financial Adviser & Partner at Halpin Wealth.
“In many cases, those assumptions are not entirely accurate and can lead to unnecessary stress or missed opportunities.”
Here are five common myths about the Age Pension and what retirees should know.
Myth #1: Owning your home means you will not qualify
One of the most common misconceptions is that owning a valuable home automatically rules you out of receiving the Age Pension.
In reality, your principal place of residence is generally exempt from the Age Pension assets test, regardless of its value.
When assessing your eligibility, Centrelink applies both an income test and an assets test. The test that results in the lower payment is the one used to determine your entitlement.
The income test looks at things such as:
- Rental income
- Investment income
- Superannuation income streams
The assets test looks at:
Cash and savings
- Shares and investments
- Vehicles and lifestyle assets
- Investment properties and other assets
“Many people are surprised to learn that the family home is not included in the assets test,” Sam says.
“Where people can become caught out is misunderstanding how other assets are assessed alongside it.”
Homeowners are generally subject to lower asset thresholds than non-homeowners, meaning the value of your other investments and savings still plays an important role.
Myth #2: You can give away assets to increase your pension
Some retirees assume they can improve their Age Pension position by transferring assets or gifting money to family members.
While gifting is allowed within limits, Centrelink has rules in place to prevent people from artificially reducing their assessable assets.
Currently, gifting limits allow:
- Up to $10,000 in a single financial year
- Up to $30,000 across five financial years
Amounts above these thresholds are still assessed as part of your assets for five years.
“This is an area where people can unintentionally create complications,” Sam explains.
“Even when gifts are made with good intentions, the rules still apply.”
This can become particularly relevant when helping adult children financially or transferring assets during retirement planning.
Myth #3: Your Age Pension assessment stays the same forever
Your eligibility and payment levels can change over time as your financial position evolves.
Centrelink assessments rely on the information provided, which means changes to your circumstances should be updated regularly.
This may include:
- Changes in investment balances
- Property sales or renovations
- Lifestyle asset values
- Changes to income or spending patterns
In some cases, updating your information may improve your entitlement.
“For some people, a review can reveal they are eligible for more support than they realised,” Sam says.
“That is why regular reviews remain important, particularly as retirement progresses.”
Myth #4: You cannot work while receiving the Age Pension
Many people assume any employment income will significantly reduce their pension entitlement.
However, the Work Bonus scheme allows eligible pensioners to earn employment income without immediately affecting their Age Pension.
Currently, eligible recipients can earn up to $300 per fortnight in employment income without it counting towards the income test
Unused amounts can also accumulate over time within a Work Bonus balance, up to current limits.
“This flexibility allows many retirees to remain connected to work, supplement income, or transition into retirement gradually,” Sam says.
For some people, part-time work can also provide valuable social connection and structure during retirement.
Myth #5: You have to choose between super and the Age Pension
Some people believe having superannuation automatically excludes them from receiving government support.
In reality, many retirees receive both superannuation income and a full or part Age Pension, depending on their circumstances.
Superannuation is assessed under the income and assets tests, though eligibility depends on the overall structure of your retirement position.
As super balances reduce over time through retirement spending, Age Pension entitlements may also increase.
“Retirement planning is rarely about one strategy in isolation,” Sam says.
“It is about understanding how super, investments, cash flow and government support work together over time.”
Source: This article was originally published on Advisely with the title “5 common myths about the Age Pension” on 6 March 2026.
Understanding your Age Pension options
Navigating the Age Pension rules can feel complex, particularly as your circumstances change over time. At Halpin Wealth, we help clients understand how superannuation, assets, income and retirement strategies work together to support long-term financial confidence.
If you are approaching retirement or would like clarity around your Age Pension eligibility and broader retirement strategy, our team is here to help.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.