If you receive the Age Pension—or expect to rely on it in the future—it’s important to stay up to date with changes that could affect your income.
From March 2026, the Australian Government increased the Age Pension while also making gradual changes to the deeming rates used to calculate pension entitlements.
For many people across Geelong and the surrounding region, these changes will have only a modest impact. However, they’re a timely reminder that even small adjustments to the rules can influence your retirement income.
The Age Pension Has Increased
The latest Age Pension increase is designed to help retirees manage the ongoing rise in everyday living costs.
Although the increase won’t completely offset higher prices for essentials such as groceries, electricity, insurance and healthcare, every additional dollar can make a difference for households living on a fixed income.
For many retirees, the Age Pension forms an important part of their overall retirement strategy alongside superannuation, investments and personal savings.
What Are Deeming Rates?
One of the most common questions I receive is, “What exactly are deeming rates?”
Deeming rates are simply the Government’s way of estimating the income your financial assets generate.
Rather than looking at the actual interest earned on every bank account or investment, Centrelink applies a deemed rate of return to eligible financial assets. That estimated income is then used when assessing your Age Pension entitlement.
It’s a system designed to simplify the assessment process, but it also means your pension may be affected even if your investments earn more—or less—than the deeming rate.
Why Have Deeming Rates Changed?
During recent years, deeming rates were kept artificially low while interest rates and financial markets experienced significant uncertainty.
From March 2026, the Government began gradually increasing those rates instead of making a large adjustment all at once.
The deeming rates introduced from 20 March 2026 were 1.25% on financial assets below the lower threshold and 3.25% on financial assets above that threshold.
Because the increases have been phased in, most retirees are less likely to experience sudden changes to their Age Pension payments.
Are You Getting the Best Return on Your Savings?
One issue that doesn’t receive enough attention is whether retirees are earning competitive interest on their cash savings.
Many Australians leave substantial amounts of money sitting in transaction accounts that pay very little interest.
Others simply prefer dealing with their local bank branch rather than managing online savings accounts.
There’s nothing wrong with wanting simplicity and security, but it’s worth reviewing your banking arrangements from time to time. A better interest rate may improve your overall financial position without taking on additional investment risk.
Age Pension Planning Is About More Than Centrelink
Many people think retirement planning is simply about qualifying for the Age Pension.
In reality, it’s about understanding how all the pieces fit together.
Your superannuation, investment income, bank savings, Centrelink entitlements and tax position all interact with one another.
A change to one area can sometimes create opportunities—or unintended consequences—in another.
That’s why personalised financial advice is often far more valuable than relying on general information published online.
Every Retirement Situation Is Different
I’ve worked with many people throughout Geelong and Greater Geelong who are surprised to discover they may be entitled to more support than they expected.
Others are already receiving the Age Pension but haven’t reviewed their financial arrangements for years.
Small adjustments to your retirement strategy can sometimes improve your cash flow, increase your confidence and help ensure you’re making the most of the entitlements available to you.
Need Help Understanding Your Age Pension?
If you’re approaching retirement or already receiving the Age Pension, it’s worth reviewing your position whenever Government rules change.
As a financial adviser based in Newtown, I help individuals and couples across Geelong and the Greater Geelong region understand how Age Pension rules, Centrelink, superannuation and retirement income strategies work together.
A simple review today may help you make more informed decisions about your retirement tomorrow.