What are the Age Pension asset test thresholds from 1 July 2026?

From 1 July 2026, the full pension asset test threshold for homeowners is $333,000 (single) and $499,000 (couple combined), up from $321,500 and $481,500. For non-homeowners the thresholds are $600,000 (single) and $766,000 (couple). The income test free areas increased to $226 per fortnight (single) and $396 per fortnight (couple), and the deeming thresholds increased to $66,800 (single) and $110,600 (couple). Payment rates are unchanged until the 20 September 2026 indexation.

Why did my projected super at retirement go down?

The Pre-Retirement Calculator previously counted the year you reach your retirement age as a contribution year, while the Retirement Calculator also modelled that same year as a drawdown year — one year counted twice. Projections now end at 30 June before your retirement age, so projected super at retirement is lower by roughly one year of contributions plus growth. Your situation has not changed; the final year is now modelled once, in the retirement phase, instead of twice.

Why do I get the same sustainable spending number every time now?

The Retirement Manager previously drew fresh random market paths each time you pressed Compute, so identical inputs could return recommendations several hundred dollars apart. The Monte Carlo simulation now uses a fixed random sequence, so the same inputs always produce the same recommendation. Investment fees are also now applied inside the simulated paths, which makes recommendations slightly lower and more accurate for anyone paying non-trivial fees.

Site updateAge PensionCalculator changes

July 2026 Update: New Age Pension Thresholds and Modelling Corrections

If you've used RetireConfident before, some of your numbers will look different this month. Every change is deliberate, and this page explains each one. The short version: Age Pension estimates have gone up, projected super at retirement has come down slightly, and the Retirement Manager now gives the same answer every time you press Compute.

Published July 2026 · 4 min read

1. New Age Pension thresholds (1 July 2026)

Services Australia indexed the full-pension asset test thresholds, income test free areas, and deeming thresholds on 1 July 2026. The calculator now uses the new figures:

Full pension asset threshold (homeowner): $333,000 single / $499,000 couple — up from $321,500 / $481,500
Full pension asset threshold (non-homeowner): $600,000 single / $766,000 couple
Income test free area: $226/fortnight single, $396/fortnight couple
Deeming thresholds: $66,800 single / $110,600 couple

Higher thresholds mean more pension at the same asset level. For part-pensioners this is typically a few hundred to around $2,000 more per year depending on your situation — and because a higher pension means drawing less from your own savings, the difference compounds across a full projection. Payment rates themselves are unchanged until the 20 September 2026 indexation.

Being upfront: for a short period in early July 2026, a bug in how this update was applied meant the calculation engine was still using the March 2026 thresholds while the rest of the site displayed the July figures. Projections run during that window understated the Age Pension — a conservative error, but an error. It's fixed, and we've added an automated check that makes this class of mistake impossible to ship silently again. If you saved a projection in early July, re-run it.

2. Pre-retirement projections now end at your last working year

Previously, the Pre-Retirement Calculator included the year you reach your retirement age as a contribution year — and the Retirement Calculator also modelled that same year as a drawdown year. One year, counted twice. Projections now model your working years as ending at 30 June before your retirement age: if you plan to retire at 60, your last accumulation year is the financial year you turn 59.

The visible effect: projected super at retirement is lower than before — by roughly one year of contributions plus growth. Nothing about your situation changed; the removed year is now modelled once, in the retirement phase, instead of twice. Charts and tables on the Pre-Retirement page now label each point with its 30 June date to make the timing explicit.

3. Sustainable spending results are now reproducible

The Retirement Manager's sustainable-spending calculation uses Monte Carlo simulation. Previously, each press of Compute drew fresh random market paths, so the same inputs could return recommendations several hundred dollars apart. The simulation now uses a fixed random sequence: the same inputs always produce the same recommendation.

We also fixed the simulation so investment fees apply inside the Monte Carlo paths — previously they were only applied in the main projection. Recommendations are slightly lower as a result, and more honest, particularly if you pay non-trivial fees.

4. Contribution caps for 2026–27

Already in place from the start of the financial year, listed here for completeness: concessional cap $32,500, non-concessional cap $130,000, bring-forward cap $390,000, Transfer Balance Cap $2.1M.

What you should do

Re-run your projection. If you keep records of past results, expect Age Pension figures to be higher and pre-retirement super projections to be modestly lower than your last run — both in the direction of accuracy. As always, every assumption the calculator makes is documented on the Assumptions page, and the calculator provides general information only, not personal financial advice.