18 Expert Tips to Maximise Your Australian Age Pension in 2025

For many Australians, the Age Pension is a reliable and secure lifelong safety net. But even if you don't need the payment itself, qualifying for even a minimal amount can be incredibly valuable. Why? Because it unlocks the Pensioner Concession Card, which is worth thousands of dollars a year in savings on essential services like healthcare, transport, and utilities.

Based on a decade of experience as a financial planner, I've compiled 18 practical tips and strategies to help you navigate the Centrelink system and legally maximise your Age Pension entitlements.

Most people who receive a part pension or no pension at all are assets tested, meaning Centrelink has assessed their assets as being too high. The following tips work by legitimately reducing your assessable assets, which in turn can increase your pension payments.

Disclaimer: This information is for educational purposes only and is not financial advice. Please do your own research and seek professional advice if needed before making any financial decisions.

Part 1: Fix Your Asset Valuations (Tips 1-5)

It sounds simple, but you'd be surprised how often people overstate the value of their assets to Centrelink. Getting these numbers right is the first and most fundamental step.

1. Get to Know Your Centrelink Account

Think of this as a basic survival skill. Sign up for a Centrelink online account and learn how to navigate the system. Check what assets and income they have on record for you and learn how to update your details when they change.

2. Report the Correct Value for Your Belongings

For your personal effects, household contents, and vehicles, you must report the current market value—that is, what you would realistically get if you sold them quickly. Check platforms like Facebook Marketplace, Gumtree, or Carsales for similar items to get an estimate. Never use the original purchase price or replacement value, as this will lead to a much higher valuation.

3. Regularly Update for Depreciation

Many people assume Centrelink automatically reduces the value of their personal assets over time. It doesn't. You need to update these figures yourself. Set a calendar reminder to review and update the value of your car and home contents at least once a year, but ideally every six months, to account for depreciation. A 10-15% annual depreciation rate for contents and 10-25% for vehicles is generally acceptable.

4. Revalue Investments After a Market Downturn

Centrelink automatically updates the value of your market-linked investments (like shares and super) twice a year, in March and September. If the market is booming, you can simply wait for their update. However, if there's a market downturn and your investments take a hit, you can ask Centrelink to revalue them at any time. This could result in you qualifying for a payment you couldn't get before or receiving a higher rate.

5. Get a New Valuation for Your Investment Property

If something property-specific happens that isn't reflected in general market trends—for example, the discovery of structural damage from termites—you should get a new valuation and notify Centrelink immediately. This could significantly decrease the property's assessable value.

Part 2: Smart Loan Management (Tips 6-7)

Every $1,000 reduction in your assessable assets increases your fortnightly pension by $3, which adds up to $78 per year—a 7.8% return on that reduction.

6. Pay Off Your Debts

Debts like credit cards, car loans, and personal loans do not reduce your assessable assets. If you have cash or other financial assets available, using them to pay off these high-interest debts is a win-win. It lowers your assessable assets, saves you on interest payments, and reduces financial stress.

7. Restructure Your Investment Loans

It's common for people to borrow against their family home (an exempt asset) to buy an investment property (an assessable asset). For Centrelink purposes, this is inefficient. If you are in this situation, consider refinancing the loan so it is secured against the investment property itself. This way, the loan amount will reduce the assessable value of that property.

Part 3: Leverage Your Principal Home (Tips 8-10)

Your principal residence is an exempt asset. This creates some of the most powerful strategies for maximising your Age Pension.

8. Consider Becoming a Homeowner

Non-homeowners are only allowed to have an extra $252,000 in assets compared to homeowners. As the average Australian home is worth far more than this, homeowners can hold significantly more net wealth while receiving the same pension. Buying a principal residence can convert a large chunk of assessable cash or super into a completely exempt asset, potentially moving you from receiving no pension to the full pension.

9. Upgrade Your Principal Home

The same principle applies if you are already a homeowner. Selling your current home and using your savings to upgrade to a more expensive one is a legitimate way to convert assessable assets into exempt home equity, which could increase your pension.

10. Renovate and Make Home Improvements

Spending money from your assessable savings on home renovations is another popular and effective strategy. Not only does it reduce your assessable assets, but it can also increase your home's value and save you money in the long run. Consider things like installing solar panels, upgrading security, or adding more energy-efficient heating and cooling systems.

Part 4: Spend Smarter, Not Less (Tips 11-14)

Spending money is the easiest way to reduce your assessable assets. The key is to do it mindfully on things that will genuinely enhance your life.

11. Live Your Life and Fulfil Your Dreams

Focus on spending your money to enhance your life, not squandering it just to get a higher pension. Use your early, more active years of retirement to travel, pursue hobbies, and do the things you've always wanted to do.

12. Prepay Your Expenses

Consider prepaying for essential costs that you would have to cover anyway, such as insurance premiums, council rates, or travel. This not only reduces your assessable assets today but can also lock in costs to avoid future price increases and simplify your cash flow.

13. Prepay Your Funeral Expenses

It makes sense to plan ahead. Prepaying for funeral expenses eases the burden on your loved ones and can increase your Age Pension. There are three main ways to do this:

• Funeral Bonds: You can invest up to $15,500 each (for FY25) into a funeral bond, making it exempt from the assets test. This means a couple can shield $31,000.
• Pre-paid Funerals & Burial Plots: These have no asset limit and are entirely exempt from the assets and income tests, regardless of the amount paid.

14. Be Smart About Gifting

You can gift up to $10,000 per financial year, with a maximum of $30,000 over five financial years, without it affecting your pension. This limit is the same for both singles and couples. Any amount gifted above this is considered a "deprived asset" and will be counted by Centrelink for five years. If you are planning to make a large gift, it's best to do so at least five years before you become eligible for the Age Pension.

Part 5: Advanced Strategies for Couples & Families (Tips 15-18)

These strategies can be highly effective but are more complex. It's best to explore them with a financial planner.

15. The Super "Age Gap" Strategy

This is a game-changer for couples. Superannuation held in an accumulation account by someone under the Age Pension age (currently 67) is not assessed by Centrelink. If one spouse is over 67 and the other is under, the younger spouse's super account can be a legitimate place to "hide" money from the assets test and significantly increase the older spouse's pension.

16. Consider a Lifetime Annuity

You can use some of your money to buy a specific type of lifetime annuity that provides a guaranteed income for life. These products receive favourable treatment from Centrelink. For the assets test, only 60% of the purchase price is counted until age 84, after which only 30% is counted.

17. Create a Granny Flat Interest

This involves transferring assets or money to someone (usually a family member) in exchange for the right to live in their property for life. It can be an effective way to reduce assessable assets, but the rules are very complex, and you should seek both financial and legal advice.

18. Use a Special Disability Trust

This strategy allows eligible family members to support a loved one with a severe disability. A combined gifting concession of up to $500,000 can be contributed to the trust. These gifted amounts are exempt from the standard gifting rules and are not included in the income or assets tests for the family members who make the gift.