This week, the government’s twice-yearly increase to age pension rates kicked in, giving us a good reason to pause and reconsider how we balance our sources of retirement income. Turns out, there’s a new sweet spot – the point where super earnings and the pension intersect to help you attain maximum earning capacity in retirement.

On 20 September 2024, the full pension rose to $1,144.40 per fortnight (about $29,754 per year) for single retirees, and $1,725.20 per fortnight (around $44,855 per year) for couples, combined.

The assets test caps have also increased, with the full pension now available to single homeowners with assets under $314,000 (excluding the family home), and $470,000 for home-owning couples. For non-homeowners, the limits rise to $566,000 for singles and $722,000 for couples.

There’s a point where super earnings and the pension intersect to help you attain maximum earning capacity in retirement.Credit: Simon Letch

The pension is a key part of many Australians’ retirement income—around 40 per cent rely on the full pension as their primary source of income, and another 24 per cent receive a part pension. It’s nothing to be ashamed of. It’s a solid and dependable income stream, and when combined strategically with your superannuation, it can set you up for a comfortable retirement.

There are two main things I like people to understand in pre-retirement planning when it comes to the pension – how to shift from one working income to layering your income streams, and how to find that sweet spot.

The latter is about finding the right balance where your super and pension........

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