UK State Pension Impact on Pensioners in Australia

Estimate only. Based on Services Australia rates from 20 September 2026 and ATO rates for the 2026–27 income year.
This is not formal tax, pension, financial, or legal advice. For information only.

1 Do you get the Australian Age Pension?

FYes, the full rateThe maximum Age Pension

PYes, a part rateReduced by the income or assets test

✕No / not yetNo means-tested payment to protect

This decides our recommendation: on the Age Pension we steer you to the higher ongoing UK pension; not on it, to the lump sum.

2 Your Current Situation

Single or couple?

Single

Couple

Do you own your home?

Your home is not counted in the assets test, but the limits are higher for non-homeowners.

Yes

Your age

We show results up to age 90.

Age Pension you get now, per fortnight (optional)

Only used to check our figures against yours.

Super balance (incl. account-based pensions)

Combined if a couple. Enter 0 if none.

Bank savings, shares and other investments

Not including the new UK lump sum.

Other assets (not your home)

Cars, caravan, home contents, investment property. Services Australia often uses about A$10,000 for home contents.

Other income per fortnight, before tax

Work, rent, other overseas pensions. Not the Age Pension or UK State Pension. Enter 0 if none.

3 Your UK State Pension Figures

Where are your figures from?

XtraPension estimate
A$ a year · lump sum after our fee

DWP letter
£ a week · lump sum before any fee

UK pension you get now (A$ a year)(£ a week)

Enter 0 if you are not receiving any UK pension yet.

Lump sum option

From your Lump Sum Estimate: boxes "A) LUMP SUM" and "B) Ongoing UK Pension / Year".From the DWP letter: the lump sum and the weekly pension that comes with it.

Lump sum (A$, as shown on the estimate)(£)

Ongoing UK pension with the lump sum (A$ a year)(£ a week)

Higher UK pension option (no lump sum)

From your Age Pension Estimate: "Ongoing UK Pension / Year".From the DWP letter: the higher weekly pension instead of a lump sum.

Higher ongoing UK pension (A$ a year)(£ a week)

4 A Few Details

The UK pension is a Category A pension (on my own record) or a widow's pension. The ATO then lets you deduct 8% of it from your taxable income. The lump sum is backpay (arrears): a DWP error or underpayment correction, not a deferred pension. Rare.

How we estimate. Figures are in today's money, up to age 90. We assume a lump sum is kept in savings, a couple's other income is shared equally, and both partners are of Age Pension age. We don't include Rent Assistance, the Work Bonus, transitional rates, actual investment earnings or moving unused tax offsets between partners. XtraPension is not a registered tax agent or financial adviser. Rates last checked 29 October 2026.