Can I Still Work Part-Time and Receive the Age Pension? (2025 Guide)

Many Australians are choosing to stay in the workforce longer not necessarily full-time, but part-time or casually.Whether it’s for extra income, social connection, or simply because you enjoy what you do, the big question remains:“Can I still work part-time and receive the Age Pension?”

The short answer is yes, you can and the government even encourages it through incentives like the Work Bonus.
Here’s how it works, what limits apply, and how to make the most of your pension while staying employed.

Understanding the Age Pension

The Age Pension provides financial support to older Australians who meet specific age, residency, and income/asset requirements.As of 2025, the qualifying age is 67 years, and you can receive a full or part pension depending on your income and assets.

But unlike many people think, working part-time doesn’t mean you’ll lose your pension it simply affects how much you receive based on your earnings.

How the Age Pension Income Test Works

The income test determines how much Age Pension you can receive if you’re still earning money.
Centrelink looks at all income sources including employment, business income, and superannuation drawdowns to calculate your entitlement.

Here’s how it currently works:

For Singles (as of 2025):

• You can earn up to $204 per fortnight without reducing your pension.
• For every dollar earned above this threshold, your pension reduces by 50 cents.

For Couples (combined):

• You can earn up to $360 per fortnight jointly before the pension starts reducing.
• Beyond that, it reduces by 50 cents for every extra dollar earned.

However, there’s a big help available the Work Bonus.

The Work Bonus Explained

The Work Bonus is a government scheme that rewards older Australians who keep working by allowing them to earn more before their pension is affected.

Here’s how it helps:

• The first $300 of employment income per fortnight is not counted under the income test.
• You can accumulate unused Work Bonus amounts (up to $11,800) if you’re not working regularly creating a “buffer” for future income.

This means you could work part-time and earn several thousand dollars per year without losing any of your Age Pension.

Example:

If you earn $500 a fortnight from a part-time job, only $200 of that counts towards the income test because the first $300 is ignored under the Work Bonus.

That means you can comfortably combine part-time income with the pension without a major reduction.

How Working Affects the Age Pension

1. Your Income May Reduce Your Payment (Not Remove It)

Working doesn’t disqualify you it just changes the amount you receive.
Most retirees simply get a part pension, depending on how much they earn.

2. You Keep Your Pension Card

Even if your income reduces your payment to zero for a period, you may keep your Pensioner Concession Card, which provides discounts on healthcare, utilities, and transport.

3. Superannuation May Still Grow

If you continue working and your employer pays super guarantee contributions (currently 11.5%), your super can keep growing even after 67 boosting your long-term security.

Example Scenarios Working Part-Time on the Age Pension

Example 1: Single Pensioner Working Casual Hours

Jenny is 68 and earns $400 a fortnight from a part-time retail job.

• $300 is exempt under the Work Bonus.
• Only $100 counts toward her income test.

Result: Her pension is reduced by just $50 per fortnight. She keeps nearly her full payment.

Example 2: Couple Working Part-Time Together

David and Sue are both 70 and earn $300 each per fortnight.
Because of the Work Bonus, all of their income is exempt, and their full Age Pension continues unchanged.

Example 3: Taking a Short-Term Contract or Seasonal Job

If you take a short-term contract or extra shifts during busy periods, your Work Bonus balance can absorb the income spike.
That means your pension won’t immediately drop as long as your accumulated bonus covers the earnings.

How to Report Your Work Income

You must report your earnings to Centrelink regularly to ensure your payment remains accurate.

You can do this via:

• Your myGov account
• The Centrelink app
• Phone or in-person visits

Reporting on time prevents overpayments or delays. If your work income changes frequently, consider updating Centrelink each fortnight.

Tips to Maximise Your Age Pension While Working

1. Track Your Work Bonus Balance:
   Keep an eye on your accumulated bonus to plan casual or seasonal work.
2. Adjust Your Hours Carefully:
   If your income is nearing the limit, consider reducing hours slightly to avoid pension cuts.
3. Salary Sacrifice Into Super (If Eligible):
   Some part-time workers over 67 still meet work test conditions to make tax-efficient super contributions.
4. Review Your Pension Regularly:
   As your income, assets, or super drawdowns change, review your entitlements each year.
5. Get Advice:
   A licensed financial adviser can help you structure your work and income to stay within Age Pension rules.

FAQs:

1. Can I work and still receive the full Age Pension?
Yes, if your income stays within the limits especially when using the Work Bonus.

2. How much can I earn before my pension reduces?
Singles can earn $204 per fortnight, couples $360 combined, plus the Work Bonus ($300 each).

3. Will working affect my super?
Yes but positively. Employers must keep paying super contributions if you’re under 75 and meet the work test.

4. What happens if I earn too much?
Your payment reduces under the income test, but you may still qualify for a part pension or concessions.

5. Do I have to stop working to get the Age Pension?
No. You can continue working part-time or casually for as long as you like.

What Age Can I Get the Age Pension in Australia?

Can I Live Off Super Alone After Retirement?

So, can I still work part-time and receive the Age Pension?Yes and the system is designed to make that possible.With the Work Bonus and flexible income rules, you can keep working, earning, and enjoying your independence without losing your financial support.At Wealthlab, we help Australians nearing or in retirement balance their income, super, and pension entitlements for a stress-free future.

Book a free consultation today to make sure your work and pension plan are working together for you.

Learn More About Retirement & Superannuation

https://www.my.gov.au/en/services/work/currently-employed/government-payments-while-you-re-working

https://www.servicesaustralia.gov.au/who-can-get-age-pension?

https://www.servicesaustralia.gov.au/supporting-documents-for-age-pension?