We have $1.2m in super. Should we try to qualify for the age pension?
Financial gymnastics aimed at obtaining a few extra dollars from social security that you don’t really need is not my cup of tea.
We have $1.2m in super. Should we try to qualify for the age pension?
Opinion
January 11, 2026 — 5.01am
January 11, 2026 — 5.01am
My wife and I disagree about whether we should adjust our assets to qualify for a part age pension. I’m 67 and still working full-time on a good income; she’s 56 working part-time. We’re mortgage-free, with about $1.2 million combined in super. She feels the pension benefits are compelling, while I think we should maintain a strong financial buffer for future risks. Which approach makes more sense?
Broad brush, my view is that if you are entitled to the age pension, you will qualify, and if you aren’t, then you won’t. Financial gymnastics aimed at obtaining a few extra dollars from social security that you don’t really need is not my cup of tea.
Cutting down your super so you qualify for the pension is generally not a good idea.Credit: Simon Letch
Currently, your question would seem to be a moot point, given you continue to work. I imagine your wife would be pointing to the opportunity presented by the 11-year age gap that you have. Any superannuation held in your wife’s name won’t count towards the age pension assets test for your application until she reaches pension age.
There may therefore be the opportunity to get some superannuation savings that are currently in your name across to hers, to get a temporary improvement in the means testing for the age pension.
You need to consider, however, that upon retirement your superannuation will be converted into a tax-free pension. If you adopt the approach of shifting a significant amount of your super across to your wife for reasons of pension maximisation, then that transferred portion in her account will continue to be subject to 15 per cent earnings tax. You would need to crunch the numbers, but it is possible that the pension gained could be overwhelmed by the extra tax payable.
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The idea of trying to equalise superannuation balances between a couple is something that, I think, is a good idea, both from an equity perspective, and also with regards considerations like the transfer balance cap. There may be a temporary pension benefit here for you too once you retire, but I wouldn’t orchestrate these moves for that reason alone.