Explainer Retirement & pensions

Deeming rates and your savings

Q: Where can I find the official rules for deeming rates and your savings?

The official source is DSS Guide to Social Security Law. All information on this page is checked against that source and dated October 2026.

Q: Is this guide up to date?

This guide was last checked in October 2026. Centrelink rates and rules change — always verify against the official source before making decisions.

How deeming affects your Age Pension if you have savings, shares or a term deposit — with worked examples for single and partnered pensioners.

5 min read Checked October 2026 DSS Guide to Social Security Law

Why deeming matters for savers

If you have savings above the deeming threshold, Centrelink assumes you earn 3.75% on the excess — even if your account only pays 1%. That assumed income can reduce your pension.

The September 2026 rate change

The lower deeming rate rose from 0.25% to 1.75% and the upper rate rose from 2.25% to 3.75%. Thresholds: $62,600 (single) / $103,800 (partnered combined).

Source: DSS, effective 20 September 2026.

Impact on pension

Every $1 of deemed income above the pension income-free area ($212/fn single) reduces your Age Pension by 50 cents. So $100 per fortnight of extra deemed income = $50/fn less pension.

Use the Age Pension estimator to calculate your own reduction.

Questions about this guide

Where can I find the official rules for deeming rates and your savings?

The official source for this guide is DSS Guide to Social Security Law. All information on this page is checked against that source and dated October 2026.

Is this guide up to date?

This guide was last checked in October 2026. Centrelink rates and rules change — always verify against the official source before making decisions.

Can I use this guide to make a claim?

This guide will help you understand your entitlements and prepare your claim, but you must submit the actual claim through myGov or at a Centrelink service centre. We never ask for or store any personal information.