Current as of 17 Feb 2026. Always verify current year rates.
How are account-based pensions tested vs money in the bank?
Short answer:
For Age Pension, money in the bank is generally treated as a financial asset and is assessed under the assets test and the income test (often using deeming). Account‑based pensions are also assessed, but the way they’re treated can differ depending on when they started and your circumstances. Because rules can be nuanced, use the current Services Australia guidance for income streams and financial investments.
Key takeaways
Bank accounts are usually assessed as financial assets, with deeming for income
Account‑based pensions are assessed too, but treatment can differ by rules and timing
Small differences can affect your payment rate
Deeming rates and thresholds change over time
Use Services Australia guidance for the current approach
Why this matters
This is a common ‘surprise’ area. Understanding how different assets are assessed helps you avoid unintended changes to your Age Pension and supports calmer drawdown decisions.
Mini-plan (3-4 steps)
- List your main financial assets (bank, super pension, other investments).
- Use Services Australia pages to confirm how each is assessed today.
- Check how deeming applies and note upcoming indexation dates.
- If you’re making a big change, consider licensed advice first.
Related questions
Sources (so you can verify)
Disclaimer: Information provided is general in nature and does not constitute personal financial advice. You should consider seeking advice from a licensed financial planner before making any financial decisions.
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