Your ETFs count for the Age Pension whether you hold them in your own name or in super pension phase. They’re counted at market value in the assets test, and in the income test through deeming: Centrelink assumes they earn 1.75% on the first part and 3.75% above that, whatever they actually pay. You get the lower of the two results. Because the pension rises as your balance falls, it works as a safety net for your portfolio.
1. Age Pension estimator
Age Pension estimator
See how your ETFs, super and other assets affect your Age Pension, under both tests.
Estimate only, general information. Rates and limits from 20 September 2026 (deeming thresholds from 1 July 2026). For people at Age Pension age (67). Excludes the Work Bonus, rent assistance, income from work and other details; Centrelink makes the actual assessment.
2. What counts
🎥 Watch me explain this
▶5:54Lever 2: the Age PensionHow much do you need to retire in Australia? · from 5:54 · read the post
3. The assets test
Add up your assessable assets: ETFs, super, cash, cars and contents, but not your home. Below the limit you get the full pension; above it, your pension reduces by $3 a fortnight for every $1,000 (about $78 a year), until it reaches zero at the cut-off.
4. The income test and deeming
For financial investments, Centrelink doesn’t look at the distributions you actually receive. It deems them to earn a set rate: 1.75% on the first $110,600 for a couple ($66,800 single) and 3.75% above that. Deemed income above the income-free area ($10,296 a year for a couple, $5,876 single) reduces your pension by 50 cents in the dollar.
For most retirees with an ETF portfolio, the assets test gives the lower result, so it’s the one that sets the pension.
5. Examples by balance
Notice how quickly the pension grows as the balance falls: from about $13,338 at $900,000 to about $36,738 at $600,000. That’s why drawing down your portfolio in retirement is less risky than it looks.
6. What it means for your ETFs
- High-yield ETFs don’t cost you more pension. Deeming ignores what your ETFs actually pay, so a high-yield and a growth ETF of the same value are treated the same.
- Franking credits don’t count in the income test either, because deeming replaces actual income.
- Market falls can lift your pension. Centrelink updates share and ETF values regularly; if your balance falls a lot, check your entitlement.
- Your home is exempt. Spending on your home, or a partner under pension age keeping super in accumulation, can change your result. Get advice before moving money for Centrelink reasons alone.
- Gifting is limited. You can give away $10,000 a financial year, up to $30,000 over five years, without it counting.
See the pension year by year in our $750,000 and $1 million examples, and how it cushions a fall in what to do when markets fall.
🎥 Watch me explain this
- ▶6:29The four retirement tiersHow much do you need to retire in Australia? · from 6:29 · read the post
▶3:24Have you lost anything if you don’t sell?Where Does the Money Go When the Market Crashes? · from 3:24 · read the post
Our free retirement plan works out your Age Pension year by year, your drawdown and a stress-tested ETF portfolio, as a PDF.
General information only, not personal advice. It doesn’t consider your objectives, financial situation or needs. Super, tax and Centrelink rules are complex and change; check with Services Australia, your fund or a licensed adviser. Examples are illustrations using the assumptions shown. ETFs named are examples, not recommendations; consider the PDS and TMD. Past performance is not a reliable indicator of future performance.
Frequently asked questions
Do ETFs affect the Age Pension?
Yes. ETFs count in the assets test at market value and in the income test through deeming, whether you hold them in your own name or in a super pension. You get the lower of the two results.
What is deeming?
Centrelink assumes your financial investments earn a set rate: 1.75% on the first $110,600 for a couple ($66,800 single) and 3.75% above that, regardless of what they actually pay.
How much can a couple have and still get the Age Pension?
From 20 September 2026, a homeowner couple gets a part pension until assessable assets reach $1,121,000, and the full pension below $499,000. Your home isn’t counted.
Do high-dividend ETFs reduce my Age Pension more?
No. Because deeming ignores actual income, a high-yield ETF and a growth ETF of the same value are treated the same for the income test.
Does super count for the Age Pension?
Super in pension phase counts. Super in accumulation counts once you reach Age Pension age; a younger partner’s accumulation super isn’t counted.