The Family Home and the Pension Assets Test — What Retirees Should Know

For many retirees, the family home is their largest asset — and often their greatest source of financial confusion.

One of the most common questions people ask is:

“Will selling my home affect my pension?”

In Australia, the family home you live in is generally exempt from the Age Pension assets test. However, once a home is sold, the money received from the sale may affect pension payments depending on how it is used or invested.

This becomes particularly important for retirees considering downsizing.

For example:

1. Money placed in bank accounts or investments may be counted as assessable assets.
2. Certain downsizer super contributions may offer financial advantages.
3. Timing can sometimes affect pension assessments.

The rules can be complex, and what applies to one person may not apply to another.

That is why it is important not to make major decisions based purely on hearsay or advice from friends. Seeking professional financial guidance before selling can help avoid unexpected surprises.

For many retirees, the goal is not simply preserving pension eligibility — it is creating financial stability and peace of mind for the years ahead.

Retirement should be a time for careful planning, not unnecessary financial stress.