The topic of Centrelink’s $1,732 pension has been circulating a lot lately, especially with the increasing trend of soft retirement among Australia’s seniors. There’s a popular belief that receiving this pension means retirees must fully stop working or lead a “soft retirement,” but Centrelink has come forward to clear up this misconception. This article will explain clearly what the $1,732 pension really means, how soft retirement works, and give you a detailed, practical guide to understanding Age Pension eligibility and payment rules in 2025.
Whether you’re a retiree, planning your retirement, or a professional advisor, this guide will break down the facts with simple examples, accurate data, and trusted resources, while addressing common questions to help you make informed decisions.
Centrelink Busts Big Myth About $1,732 Pension As ‘Soft Retirement’ Trend Grows
| Topic | Detail |
|---|---|
| Full pension fortnightly rate | Approx. $1,732 combined for couples (as of 2025, before recent updates) |
| Age Pension eligibility age | 67 years or older (currently, for those born after July 1952) |
| Income thresholds | Full pension if income ≤ $218 (single), $380 (couple) per fortnight (2025 figures) |
| Assets test limits | Couples’ full pension if assets < $481,500 (homeowners, combined) |
| “Soft retirement” defined | Partial work or lifestyle balance while receiving Age Pension |
| Payment frequency | Fortnightly |
The idea that the $1,732 Age Pension is only for those who completely retire is a myth that Centrelink has clarified. The Age Pension system supports a variety of retirement lifestyles, including those who choose to engage in part-time work or maintain an active lifestyle through the soft retirement trend.
Understanding eligibility through income and assets tests, knowing the pension rates, and planning your retirement accordingly can empower you to make smart financial decisions in your golden years. For the most accurate and personal advice, always consult Centrelink directly or use their official resources online.
For the latest official info on eligibility and payment rates, visit the official Centrelink website.
What Is the $1,732 Pension Myth?
The $1,732 pension figure many have heard refers mainly to the combined fortnightly payment for couples receiving the Age Pension. People misunderstand it as if retirees need to fully retire to receive this amount or that this sum is fixed and guaranteed for everyone.
Centrelink has clarified this is a myth. Receiving the Age Pension does not mean you must completely stop working — the government allows people to work part-time or have modest incomes without losing eligibility. This evolving mindset is part of a broader social trend called soft retirement, where retirees balance some work, hobbies, or travel while receiving government support.
What Is Soft Retirement?
Soft retirement means a gradual transition from full-time work to retirement rather than an abrupt stop. It might involve:
- Working part-time or casual jobs.
- Engaging in volunteer work.
- Pursuing hobbies or passion projects.
- Traveling domestically or abroad in caravans or RVs.
This lifestyle is increasingly popular among baby boomers and retirees wishing to stay active and engaged. Centrelink policies support this trend by assessing pension eligibility through means testing income and assets, allowing pensioners to retain some income without immediate pension loss.
How Does Centrelink Calculate the Age Pension?
Centrelink calculates your pension based on two main tests, then pays you whichever results in the lower amount:
1. Income Test
This test looks at how much money you earn each fortnight (from work, investments, superannuation withdrawals, and other sources). For example:
- Singles get a full pension if income is $218 or less per fortnight.
- Couples (combined income) get a full pension if income is $380 or less per fortnight.
If income exceeds these limits, pension payments reduce by 50 cents for every dollar earned above the threshold. The government also offers a “work bonus” to exclude some employment income from assessment.
2. Assets Test
This review covers the total value of your assets, excluding your home. Asset limits as of September 2025 are roughly:
- Single homeowners: Assets under $321,500 qualify for the full pension.
- Couple homeowners: Combined assets under $481,500 qualify for the full pension.
Part pensions are available for those with assets between these thresholds and the cut-off points, which are higher.
Important: The test which results in the lower pension payment applies.
How Much Is the Full Age Pension in 2025?
As of March 2025, the base rates approximately are:
| Pensioner Type | Fortnightly Payment (before supplements) | Approximate Annual Amount |
|---|---|---|
| Single | $1,179 | $30,646 |
| Couple (each person) | $888 | $23,101 |
| Couple (combined) | $1,777 | $46,202 |
From 20 September 2025, increases are expected:
- Singles will receive an additional $29.70 per fortnight.
- Couples will receive about $44.80 additional combined per fortnight.
These payments include a base pension, pension supplement, and energy supplement. The exact amount you get depends on income and assets.
Practical Tips for Retirees and Advisors
- Check eligibility early: Knowing if you qualify helps plan retirement finances.
- Understand means tests: Keep track of income from all sources and asset values.
- Use official calculators: Services Australia offers an Age Pension Eligibility Calculator to estimate your payment.
- Plan travel and work carefully: If you travel or work part-time, confirm how this affects asset and income tests.
- Seek advice: Professionals and Centrelink advisors can clarify complex cases.
Example Scenario: The Soft Retiree Couple
John and Mary are both 68 and semi-retired. John works one day a week earning $150 per fortnight. Mary has a small rental income of $200 per fortnight. Their combined income from these sources is $350. Their assets (excluding their home) total $400,000.
- Their income test limit for a couple is $380 per fortnight, so they qualify for some pension under the income test.
- Their assets exceed the full pension threshold for couples but are below the cutoff for part pension eligibility.
Centrelink will calculate their pension using both tests and pay them whichever results in the lower amount, likely a part pension. This example illustrates how retirees can balance some work and income, yet still receive Age Pension support.
Baby Boomers in Trouble? Centrelink’s ‘Special’ Rule Hits Downsizers Hard
FAQs About Centrelink Busts Big Myth About $1,732 Pension As ‘Soft Retirement’ Trend Grows
Can I work while receiving the Age Pension?
Yes, you can work part-time or earn some income. The income test will reduce your payments if you earn more than the set limits, but you won’t lose the pension entirely unless your income is very high.
What counts as income for the Age Pension?
Income includes wages, superannuation withdrawals, investment earnings, and deemed income from financial assets.
How does travel affect my pension?
If you travel overseas or live in caravans, Centrelink may assess your assets differently during absences. Ensure you notify Centrelink of travel plans.
What is the pension age in Australia?
Currently, the qualifying age is 67 years for people born after 1 July 1952.
How often is the Age Pension paid?
Payments are made every two weeks (fortnightly).
