Case Study: How Mary Turned Her $400,000 Super into a Full Age Pension
When 67-year-old Mary retired with $400,000 in super, she assumed she wouldn’t be eligible for much, if any, Age Pension. As a single homeowner with no other income or assets, she thought Centrelink would count her super against her and reduce her entitlement.
However, by working with a professional pension advisor for seniors, Mary was able to legally restructure her finances and qualify for the full Age Pension, while still keeping her super available for emergencies and long-term income.
Here’s how we helped her maximise her Age Pension benefits through smart planning and Centrelink Age Pension support.
Mary's Situation at Retirement
Age: 67
Home ownership: Yes (owner-occupied, exempt from assets test)
Superannuation balance: $400,000
Savings: $2,000 in bank account
Debt: None
Relationship status: Single
Residency: Australian citizen, meets residency rules
Step 1: Assessing Age Pension Eligibility
As of July 2025, a single homeowner can receive a full Age Pension if their total assessable assets are below $314,000. Mary’s super counted as an asset once she reached Age Pension age, meaning her $400,000 super balance exceeded the threshold by $86,000.
Without any action, she would only be entitled to a part Age Pension.
We explained that she could still qualify for the full Age Pension by using a legitimate Centrelink-approved strategy: moving part of her super into an asset-exempt product.
Step 2: Using a Complying Lifetime Income Stream (Annuity Strategy)
To reduce her assessable assets and qualify for the full Age Pension, we recommended Mary consider investing a portion of her super into a lifetime annuity — a special type of income stream that is treated favourably under the Centrelink assets test.
Here’s how the strategy worked:
🔹 Mary invested $250,000 of her super into a lifetime annuity that met Centrelink’s “compliant” rules.
Under Centrelink rules (as at July 2025), only 60% of the annuity’s purchase price is counted as an asset.
So, instead of $250,000 being fully counted, only $150,000 was included in her assessable assets.
🔹 She kept the remaining $150,000 in an account-based pension.
This portion remained fully assessable under the assets test, but gave her flexibility and access to funds if needed.
🔹 Total assessed assets:
Annuity (60% of $250,000): $150,000
Account-based pension: $150,000
Bank account: $2,000
Total assessable assets: $302,000
→ ✅ Under the $314,000 threshold for a single homeowner
Step 3: Submitting the Application With Confidence
With our help, Mary submitted her application online through Centrelink, with:
Clear documentation of her financial products
Proof of her annuity investment
A breakdown of her asset restructure
Ongoing Age Pension application assistance from our team
We also monitored the process, followed up with Centrelink, and provided clarification when needed — all part of our Age Pension support package.
The Outcome
Mary was approved for the full single Age Pension, which gave her:
✅ $1,116.30 per fortnight (indexed, as at July 2025)
✅ Pension Supplement and Energy Supplement
✅ Commonwealth Seniors Health Card
✅ Extra funds from her annuity and pension account
✅ Peace of mind with secure, reliable retirement income
Why This Works: The Centrelink Advantage
Centrelink’s rules are designed to encourage retirees to draw income over time, rather than keep large lump sums. Certain income stream products, like lifetime annuities, receive concessional treatment under the assets and income tests — and can be powerful tools to unlock higher Age Pension payments.
Mary’s case shows that with the right advice, a seemingly high super balance doesn’t always mean missing out on the Age Pension.
Final Thoughts
Even with $400,000 in superannuation, Mary was able to access the full Age Pension—all thanks to smart structuring, product knowledge, and expert guidance. Her story shows how important it is to get personalised Age Pension advice, especially when the rules are complex and constantly changing.
Need Help Turning Your Super into a Pension?
We specialise in:
Help with Age Pension applications
Age Pension form support and documentation preparation
Strategies to legally reduce assessable assets
Lifetime annuity guidance and comparison
Centrelink Age Pension advocacy and follow-up
Let us help you apply for the Age Pension with confidence, and ensure you're not leaving money on the table.
✅ Book Your Free Age Pension Consultation Today
Whether you have $100,000 or $500,000 in super, we can help you unlock your full Age Pension entitlements.
📞 Call now or 📅 book online for a no-obligation chat with a trusted Age Pension consultant.
