What is Age Pension indexation?

Indexation is the regular increase of pension payment amounts by the government, in line with inflation and community wage growth, usually twice a year.

What is a deeming rate?

A deeming rate is the interest rate Centrelink assumes you earn on savings/investments, regardless of actual income, used to calculate pension eligibility and payment size.

If rates change, when does it affect my pension?

Changes apply at the next indexation date (typically March and September). Payment amount updates automatically by Centrelink at your scheduled pay cycle.

Will changing deeming rates lower my payment?

If deeming rates rise or your assets/income grow, your assessed income could increase, possibly lowering your pension. If they fall, you may get more.

Does this count as financial advice?

No. This tool is a guide only. Always seek personal advice or contact Centrelink for decisions regarding your benefit.

Age Pension Indexation Estimator

AI + Live Data

Estimates age pension adjustments due to indexation and deeming rate changes for 2026. Helps retirees understand pension impacts.

Free to useNo data storedReal-time dataAI insightsUpdated: March 2026

The 2026 Age Pension Indexation Estimator helps Australians planning for retirement or already receiving the Age Pension to understand how annual indexation and deeming rate changes may impact their payments. Designed for simplicity, it uses your actual assets, income, and basic situation to show what your new Centrelink benefits could look like post-indexation, so you can plan ahead or check entitlement changes.

Enter Your Details

Real-World Examples

Single retiree, homeowner

A 67-year-old single, owns their home, $400,000 in assets, $10,000 annual income, current pension $950/fortnight, new deeming rate 3.5%.

Inputs Used:

currentPension:950singleOrCouple:Singleassets:400,000income:10,000homeOwner:YesdeemingRate:3.5

Estimate shows pension will rise by ~$10/fortnight due to indexation, but a slight means test tightening from a higher deeming rate may offset gains. New payment projected at $960/fortnight.

Couple (non-homeowners) with moderate assets

A couple, both age 70, not homeowners, $600,000 in assets, $28,000 annual income, current combined pension $1,400/fortnight, deeming rate 4.2% for 2026.

Inputs Used:

currentPension:1,400singleOrCouple:Coupleassets:600,000income:28,000homeOwner:NodeemingRate:4.2

Retention of full pension expected, but increase smaller than indexation headline due to tightening asset test. Result: $1,420/fortnight (+$20 rise).

Frequently Asked Questions

Glossary

Indexation

The process of adjusting government payments in line with inflation.

Deeming Rate

Interest rate used by Centrelink to estimate investment income in means tests.

Assets Test

A test for pension eligibility based on the value of all assets owned.

Means Test

Combined income and assets checks to determine qualification and payment size.

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How to Use

1Enter your current fortnightly Age Pension payment as advised by Centrelink.
2Select whether you are single or a couple.
3Input total assessable assets and annual income as used for the pension means test.
4Select if you are a homeowner (affects thresholds).
5Input the latest deeming rate, or use the default shown for 2026.
6Click 'Estimate Pension'. Your potential new payment will be shown, including any expected rise or reduction.
7Review next steps and advice based on your new estimate.

Key Information

Uses official Centrelink formulas for both asset and income/means tests.
Updated for the most recent 2026 indexation and deeming rates.
Estimates are for guidance only – actual entitlements are calculated by Centrelink.
Includes residency and homeowner status in calculations.
No personal data is kept after calculation – all is private.

Pro Tips

Regularly update your income/asset details with Centrelink. Incorrect figures may affect payments.
Monitor government announcements for changes to rates and thresholds.
Use this estimate to discuss retirement plans with a qualified adviser.

Avoid These Mistakes

Using outdated payment amounts or missing assets in calculation.
Selecting the wrong household status (single/couple).
Ignoring the impact of rising/falling deeming rates.

Disclaimer: All calculations are estimates and for informational purposes only. Check latest Centrelink info for your situation. Updated March 2026.

Last updated: March 2026