The Finance Algorithm

Age Pension Deeming Impact Estimator

Model how deeming rates (1.75% and 3.75% from 20 September 2026) affect the Age Pension income test, single or couple.

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type

Select if you are modeling as a single or couple.

$
$250k

Sum of all financial/investment assets subject to deeming (e.g. savings, shares, super pensions).

$
$0

Other income (employment, rental, etc) not included in financial assets.

The button asks our AI to explain these figures in words.

Age Pension: deeming impact (Single)

Estimated pension

$31,099

$1,196 / fortnight

Deemed income

$8,039

1.75% to $66,800, 3.75% above

Assessable income

$8,039

free area: $5,876/yr

Pension reduction

$1,082

50c taper above free area

Max pension vs your estimated payment

The reduction segment is what the income test removes once deemed + other income exceeds the free area.

$32,180Max pension$32,180Your pension

How your assets are deemed

Two tiers: a low rate up to the threshold, a higher rate above it.

$1,169Tier 1 @1.75%$6,870Tier 2 @3.75%
Estimated pension: $31,099/yr
Single with $250,000 in financial assets: deemed income totals $8,039 ($1,169 at 1.75% + $6,870 at 3.75%). Combined with $0 of other income, assessable income is $8,039. You're part-pension of about $31,099/yr. Income above the free area ($5,876) reduces the pension by 50c on the dollar.

How it works

The Age Pension Deeming Impact Estimator helps Australian retirees model how deeming rates and the income test affect their Age Pension. It uses the deeming rates, thresholds and income free areas in force since 20 September 2026, from the Department of Social Services' Social Security Guide, and updates when they change.

  1. 1Choose your situation: Single or Couple.
  2. 2Enter the total value of your financial/investment assets.
  3. 3Add any other income you receive (optional).
  4. 4Read how much income your assets are deemed to earn; it updates as you type.
  5. 5Review the estimated impact on your Age Pension payment.

The figures today

From 20 September 2026, the full Age Pension is $1,237.70 a fortnight for a single and $1,866.00 for a couple together. It next changes on 20 March 2027.

Age Pension rates and means test

Worked examples

Single Retiree with $80,000 in Assets

Sue is a single retiree with $80,000 in term deposits and shares, deemed at 1.75% on the first $66,800 and 3.75% on the rest.

Scenario type
Single
Total financial assets
$80,000

Single with $80,000 in financial assets: deemed income totals $1,664 ($1,169 at 1.75% + $495 at 3.75%). Combined with $0 of other income, assessable income is $1,664. You're still on the full Age Pension. Income above the free area ($5,876) reduces the pension by 50c on the dollar.

Couple with $120,000 in Super & Savings

A couple has $120,000 in combined super and savings. The first $110,600 is deemed at 1.75%, the remainder at 3.75%.

Scenario type
Couple
Total financial assets
$120,000

Couple with $120,000 in financial assets: deemed income totals $2,288 ($1,936 at 1.75% + $353 at 3.75%). Combined with $0 of other income, assessable income is $2,288. You're still on the full Age Pension. Income above the free area ($10,296) reduces the pension by 50c on the dollar.

Questions people ask

What are deeming rates?
Deeming rates are used to estimate the income you earn from financial assets for Age Pension purposes, regardless of the actual return.
When do deeming rates change?
The government sets the rates, and has recently moved them with the 20 March and 20 September indexation; the thresholds rise on 1 July. These figures apply from 20 September 2026, and the next change is due 20 March 2027.
Does this tool cover both singles and couples?
Yes. The scenario type field lets you model both cases.
Are rental properties counted as financial assets?
No, only financial investments like bank accounts, shares, and superannuation are counted for deeming.
Is this calculator up to date?
Yes. It reads the Social Security Guide's current figures, in force since 20 September 2026, and updates when the Guide does.

The terms, in plain English

Deeming Rate
A government set rate applied to financial assets to estimate income for the pension income test.
Age Pension
A means-tested payment for eligible older Australians, subject to income and asset tests.
Income Test
A test by Centrelink/Services Australia that measures assessable income for Age Pension purposes.
Financial Assets
Investments such as bank accounts, shares, managed funds, and account-based pensions.

Official sources

Super Balance Projector

Project your future superannuation balance at retirement.

Retirement Income Calculator

Estimate post-retirement income from superannuation and other sources.

Co-Contribution Calculator

See your government super co-contribution eligibility.