If you’re wondering how your $60,000 in savings might affect your Centrelink Age Pension in 2025, you’re in the right place. Whether you’re planning your retirement or just trying to make sense of the rules, it can all feel a bit like trying to read the fine print on a cereal box without your glasses. No worries—we’re here to make it simple, clear, and a little bit friendly too.
In 2025, the Centrelink Age Pension continues to be a vital safety net for many older Australians. But how much you get depends on a few key things, including how much money you have stashed away. That’s where your $60,000 in savings comes into play.
Centrelink Age Pension 2025
| Topic | Details |
|---|---|
| Eligibility Age | 67 years (as of July 1, 2023) |
| Asset Test for Full Pension (Single Homeowner) | Up to $321,500 |
| Asset Cut-Off (Single Homeowner) | $704,500 |
| Deeming Rate (as of 2025) | 0.25% up to threshold, 2.25% thereafter |
| Impact of $60,000 Savings | No reduction in full pension (if total assets stay under limit) |
| Income Test Threshold (Single) | $204 per fortnight |
| Useful Tool | Services Australia Pension Calculator |
Having $60,000 in savings in 2025 won’t hurt your Centrelink Age Pension if your total assets stay under the thresholds. In fact, it’s a good safety net for emergencies, travel, or treating the grandkids. Just keep an eye on asset and income limits, and use tools like the Centrelink Payment Finder to stay in the loop.
What is the Centrelink Age Pension, Anyway?
The Age Pension is a payment from the Australian Government to help eligible older folks cover the basics of life—rent, food, power, and a little bit of leisure. To get it, you need to meet some conditions around age, residency, and of course, your income and assets.
As of July 1, 2023, you need to be at least 67 years old to qualify. You must also be an Australian resident, living here for at least 10 years.
So, What Does $60,000 in Savings Do to Your Pension?
If you’re a single homeowner, Centrelink says you can have up to $321,500 in assets and still get the full Age Pension. That means your $60,000 in the bank? You’re well under the limit.
Even if you had other assets—like a car, some furniture, maybe a little super left over—you’d still be good for the full amount if you’re under that $321,500 cap.
But here’s the catch: if your total assets creep above that, your pension payment starts to go down by $3 per fortnight for every $1,000 over the limit.
Quick Example:
Let’s say you have $60,000 in savings, plus $250,000 in other assets (super, car, etc.). That’s $310,000 total.
You’re under the $321,500 threshold, so you get the full pension.
Now let’s say you inherit $50,000, and your total assets hit $360,000. You’re $38,500 over the full-pension limit. That means your fortnightly pension drops by $115.50.
How the Deeming Rules Work
Here’s where it gets a little nerdy, but stick with us—deeming is how Centrelink estimates the income your savings generate, even if you keep your cash in a sock drawer.
As of 2025, the deeming rates are:
- 0.25% on the first $60,400 (for singles)
- 2.25% on anything above that
So, your $60,000 in savings is “deemed” to earn about $150 a year, or $5.77 a fortnight. Not too shabby, and importantly, well below the income test threshold, which is $204 per fortnight for singles.
The Two Big Tests: Income vs. Assets
Centrelink runs both an income test and an asset test. They pay you the lower amount based on whichever test results in less money. Let’s break them both down.
Asset Test
- Includes savings, super, property (not your home), vehicles, and more
- Thresholds updated yearly (check Services Australia for current figures)
Income Test
- Based on deemed income (from savings) and real income (like rent or work)
- $204/fortnight for singles = full pension
- Reduces by 50 cents per dollar over the limit
If you’re only working part-time or just have savings, you’re probably under both limits.
Practical Tips to Maximize Your Age Pension
1. Prepay Future Expenses
Spend a bit upfront to lower your assets—think funeral plans, dental work, or home improvements.
2. Gifting Rules
You can gift up to $10,000 a year (max $30,000 over five years) without affecting your pension. Anything more? Centrelink still counts it.
3. Use a Financial Adviser
This stuff gets complicated, fast. Talking to a retirement specialist can help you plan smartly.
4. Track Changes Each July
Centrelink updates rates and thresholds on July 1st each year. Keep tabs to avoid surprises.
FAQs
Can I get the pension with $60,000 in savings?
Yes. As long as your total assets are below the threshold ($321,500 for single homeowners in 2025), you’re eligible for the full Age Pension.
Does my home count in the asset test?
Nope. Your primary residence is exempt from Centrelink’s asset test.
Will Centrelink know how much I have in my bank account?
Yep. You must declare it, and they might check with your bank if needed. Best to be honest.
Can I still work and get the pension?
Yes, but there are limits. The Work Bonus lets you earn up to $11,800/year without affecting your pension.
What if I’m part of a couple?
The rules change. As a homeowning couple, your combined assets can be up to $481,500 for full pension eligibility.
