How Relationship Changes Affect Your Age Pension

Separation, divorce, the death of a partner, or starting a new relationship in retirement — these life events don't just change your personal circumstances. They fundamentally change how Centrelink assesses your Age Pension. Your payment rate, your assets test thresholds, and your income test free areas all shift when your relationship status changes, and you need to report these changes promptly.

Single vs Couple: Why It Makes Such a Difference

Centrelink pays different pension rates and applies different thresholds depending on whether you're assessed as single or as a member of a couple. Here's how the key figures compare:

As you can see, a single pensioner gets a higher individual payment rate than each member of a couple, but couples get higher combined thresholds. The shift between these rates when your relationship status changes can significantly affect your pension.

Separation and Divorce

When you separate from your partner, Centrelink reassesses you as a single person. This means your pension rate changes to the single rate, which is higher per person than the couple rate. However, the way your assets and income are assessed also changes.

How Assets Are Split for Centrelink

Centrelink doesn't wait for a formal property settlement. When you report a separation, they'll immediately reassess each person on their own assets. Initially, this may be based on a rough split — typically Centrelink assumes a 50/50 division unless told otherwise. Once a formal property settlement is reached, the actual division is used.

What to Report

Tell Centrelink within 14 days that you've separated. You'll need to provide the date of separation, your new living arrangements, and a preliminary indication of how assets and income will be divided. You do not need to wait for the divorce to be finalised — it's the separation that matters for Centrelink, not the legal divorce.

Death of a Partner (Bereavement)

Losing your partner is devastating, and navigating Centrelink during this time can feel overwhelming. Here's what happens to your pension:

The Bereavement Period

Centrelink provides a bereavement period of up to 14 weeks after your partner's death. During this time, you continue to receive the combined couple rate of pension (your share plus your partner's share). This is designed to give you financial breathing room during an incredibly difficult time.

After the bereavement period ends, you'll be reassessed as a single person. Your pension rate will change to the single rate, and your assets and income will be reassessed based on what you now own individually.

What Happens to Joint Assets

After the bereavement period, assets that were jointly held are assessed as yours individually. If your partner had their own super, insurance, or other assets, these may pass to you (depending on the will and beneficiary nominations), increasing your total assessable assets. This is worth planning for — see our guide on inheritances and windfalls for strategies.

Starting a New Relationship

If you enter a new relationship — whether marriage, de facto, or a registered relationship — Centrelink will reassess you as a member of a couple. This applies even if you don't live together full-time, as long as Centrelink considers you to be in a "member of a couple" relationship.

Impact on Your Pension

Becoming a couple means your new partner's assets and income are combined with yours for assessment purposes. If your new partner has significant assets or income, this could substantially reduce or cancel your pension, even if those assets are entirely in their name. Conversely, if your partner has low assets and income, you may qualify for a couple rate that provides reasonable combined pension.

Mixed-Age Couples

If your new partner is under Age Pension age (67), you may be assessed as a mixed-age couple. This has specific rules and implications — including that your partner may need to claim a payment in their own right (such as JobSeeker or Carer Payment) rather than receiving a partner pension.

De Facto Relationships and "Separated Under One Roof"

Two situations cause particular confusion:

De Facto Relationships

You can be assessed as a couple even without being married. Centrelink looks at the nature of your relationship, not its legal status. If you're living with someone and sharing financial and domestic responsibilities, Centrelink may determine you're a member of a couple.

Separated Under One Roof

Sometimes couples separate but continue living in the same house for practical reasons (financial, children, property). Centrelink allows you to be assessed as separated under one roof, but you'll need to demonstrate genuine separation: separate bedrooms, separate finances, not presenting as a couple socially, and not sharing domestic responsibilities as a couple.

This determination requires a formal assessment by Centrelink. You'll need to provide detailed information about your living arrangements, and Centrelink may contact you for further evidence.

Practical Steps When Your Relationship Changes

1. Report within 14 days — Call 132 300 or report through myGov
2. Update your bank details — Ensure pension payments go to the right account
3. Review your super beneficiaries — Update binding death benefit nominations
4. Update your will — Separation and new relationships change estate planning
5. Check your health care card — Your card type and eligibility may change
6. Model the impact — Use our entitlements checker to estimate your new pension
7. Get professional advice — Particularly for separation and property settlements

Last reviewed: February 2026