When you’re eligible for the Age Pension, means testing of your assets and income is used to calculate how much you’re entitled to. If you’re thinking about doing some paid work to top up your retirement income, it’s important to understand what impact, if any, it will have on your pension entitlements.
Working adds income, but the work bonus and separate assets tests could mean your Age Pension is no different while working than while fully retired. In other cases, your entitlements will significantly reduce if you work.
Learn more about the work bonus.
And then there’s tax. Since both the Age Pension and employment income are taxable, it is important to consider your after-tax results to decide whether the benefit of working is enough to justify remaining in, or returning to, the workforce.
With so many variables it’s hard to know where to begin, so we have put together some examples to demonstrate the possibilities and a calculator you can use to estimate the maximum possible effect working will have on your Age Pension.
Need to know
All calculations in our examples are based on Age Pension payment rates and thresholds and deeming rates effective in October 2025. Age Pension rates are changed on the 20 March and 20Â September every year. Assets and income test limits are updated every 1 July.
Find up-to-date Age Pension rates, assets test thresholds and income test thresholds.
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