A major issue with retirement planning for some people is the way the Centrelink assets test penalises people who have saved more. This is sometimes referred to as the ‘taper trap’.
In 2025–26, only 37.5% of Australians who have reached Age Pension age (67) receive a full-rate pension.
A further 28.5% receive a part Age Pension, where the amount of income they receive varies depending on the value of their assessable assets or income over time. This can make retirement income planning difficult.
The remaining 34% receive no Age Pension – either because they don’t meet other eligibility criteria (such as residency rules), their assets or incomes are too high, or they haven’t applied.
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