If you and your partner are planning retirement together, you might be wondering:“What happens if my partner works will it affect my pension?”It’s one of the most common questions among Australian couples. The short answer is yes, it can, but not always in the way you might think.
The government looks at your combined income and assets when determining your Age Pension eligibility, so your partner’s work income can influence how much you receive.
Here’s how it all works and how to plan around it.
How the Age Pension Works for Couples
In Australia, couples are assessed together for the Age Pension under what’s called the combined income and assets tests.
This means:
- You and your partner’s income (from work, investments, and super) is added together.
- Your assets (such as property, vehicles, and savings) are also combined.
- The total determines whether you receive a full, part, or no pension.
It doesn’t matter whether you’re married or in a de facto relationship the rules are the same.
What Happens If My Partner Works Will It Affect My Pension Under the Income Test?
Yes, your partner’s income will count towards your combined earnings, which could reduce your pension amount.
Here’s how the income test works in 2025:
| Couple Income (Combined) | Effect on Pension |
|---|---|
| Up to $360 per fortnight | Full Age Pension |
| Over $360 per fortnight | Pension reduces by 50c for each dollar above the threshold |
| Over $3,661 per fortnight (~$95,186/year) | No pension payable |
Example:
If your partner works part-time and earns $1,000 per fortnight, that’s $640 above the threshold.
Your combined Age Pension would reduce by $320 per fortnight ($160 each).
The more your partner earns, the more your pension reduces but you don’t automatically lose it entirely unless your combined income is quite high.
What Happens If My Partner Works Will It Affect My Pension Under the Assets Test?
Even if your partner isn’t working, your combined assets can also affect your pension.
As of 2025, here are the asset limits for couples:
| Homeowners | Non-Homeowners | Pension Type |
|---|---|---|
| Up to $1,012,500 | Up to $1,254,500 | Full pension |
| Up to $1,659,000 | Up to $1,901,000 | Part pension |
If your combined assets exceed these thresholds, your Age Pension reduces or stops.
This means your partner’s superannuation (if they’re over Age Pension age and drawing from it), investment property, or even a business can impact your payment.
What Age Can I Get the Age Pension in Australia?
The Work Bonus How It Can Help
Here’s some good news: if your partner is working, they might be able to use the Work Bonus to reduce the impact of their income on your pension.
- The first $300 of employment income per fortnight is not counted under the income test.
- Unused amounts can accumulate up to $11,800 as a “buffer” for future work income.
So, if your partner only works casually or seasonally, their income may have little or no effect on your pension thanks to this bonus.
Example:
If your partner earns $400 per fortnight, only $100 counts toward the income test after applying the Work Bonus.
What If Only One Partner Gets the Age Pension?
Sometimes one partner is over 67 and eligible for the pension, while the other is younger and still working.
In this case:
- The younger partner’s income still counts under the combined income test.
- However, your payment is assessed as a couple, even if only one person receives the pension.
- Once both reach 67, both can apply and be assessed together again.
This situation is very common and can be managed with good planning especially if you coordinate income from super and work effectively.
How Do I Apply for the Age Pension Through Services Australia?
How to Minimise the Impact of Your Partner’s Work
If your partner’s income affects your pension, there are ways to balance things out:
- Plan Part-Time Hours Strategically:
Earning just below the income threshold (with the Work Bonus) keeps the full pension intact. - Use Super Wisely:
Super held by a partner under pension age isn’t counted yet in the assets test. Timing withdrawals and investments can make a difference. - Split Contributions:
Super contribution splitting between partners can help even out retirement balances and improve pension eligibility later. - Seek Advice:
A licensed financial adviser can help you structure work, super, and assets to maximise entitlements and minimise reductions.
FAQs:
1. Does my partner’s income reduce my Age Pension?
Yes, your pension is based on combined income. If your partner works, their income is included in the income test.
2. Can my partner work part-time and still get the full pension?
Yes if their earnings stay within the threshold and the Work Bonus applies.
3. What if my partner is younger and still working full-time?
Their income still counts under the income test, but your pension may only reduce partially, not disappear entirely.
4. Does my partner’s super count as an asset?
If they’re under Age Pension age, their super balance is not counted. Once they reach 67, it becomes assessable.
5. What’s the best way to manage this?
Review your combined income and assets regularly, and talk to a retirement planner to help balance your super drawdowns, work income, and pension.
what happens if my partner works will it affect my pension?
So, what happens if my partner works will it affect my pension?Yes, their income is included in the assessment, but it doesn’t always mean you’ll lose your payment.With tools like the Work Bonus, careful planning, and the right strategy, you can both work part-time or casually while keeping your Age Pension benefits.
At Wealthlab, we help couples optimise their income, super, and pension eligibility so they can enjoy retirement on their own terms.
Book a free consultation today to find out how your partner’s income could impact your pension and how to plan smartly around it.
Learn More About Retirement & Superannuation
https://www.servicesaustralia.gov.au/income-test-for-age-pension?
https://www.servicesaustralia.gov.au/working-while-youre-getting-age-pension?
https://www.servicesaustralia.gov.au/assets-test-for-age-pension?