Retiring Without Owning Your Home: What the Age Pension Really Pays Renters

Almost every retirement number you've heard assumes you own your home. If you're still paying rent, those numbers don't apply to you. On ASFA's own budgets, a single renter needs $14,870 a year more than a homeowner for the same modest lifestyle. Here's what the Age Pension actually pays a renter, with every number on screen. TIMESTAMPS 0:00 Every retirement number assumes you own 0:43 Rent Assistance is automatic 1:03 The two differences for renters 1:19 Assets test limits: owner vs renter 1:44 How Rent Assistance works 2:09 The Rent Assistance table (screenshot this) 2:15 What counts as rent - and public housing 2:34 Retirement villages and the $267,000 test 3:13 Is deeming the same for renters? 3:26 Lyn's numbers 4:41 The test that gets there first 5:01 Add Rent Assistance, take out the rent 5:36 It isn't the rules - it's the rent 6:02 Against ASFA's renter budget 6:36 Does the help keep up with rent? 7:14 Telling Centrelink about a rent rise 7:26 Selling the home to rent 8:07 Renting in retirement in one breath WHAT'S IN THIS ONE (rates from 20 September 2026) - The only two ways Centrelink treats renters differently: more room on the assets test, and Rent Assistance on top. Everything else is the same. - Full-pension assets limits: $333,000 single homeowner vs $600,000 single renter; $499,000 vs $766,000 for a couple - $267,000 more either way - How Rent Assistance works: 75c for every $1 of fortnightly rent above $157.80 (single), up to $223.80 - reached at $456.20 rent a fortnight. Couples up to $211.00 combined; single sharers up to $149.20 - What counts as rent (retirement village fees, lifestyle parks, board and lodging) and the big exception: no Rent Assistance in state or territory public housing - Retirement villages: how your entry contribution decides whether you're treated as a homeowner or a renter - Is deeming the same for renters? Yes - and why that matters more for a renter - Lyn: 67, single, renting, $400,000 in super. Her extra assets room is worth $141 a fortnight, not $291, because deeming gets there first - Pension plus Rent Assistance: $1,311.73 a fortnight - then $511.73 left after $800 of rent, against $946.70 for the same savings as a homeowner - ASFA's modest renter budget ($51,418) and lump sums ($340,000 vs $110,000) - Does the help keep up with rent? Rent Assistance follows the CPI, not your rent - and past the maximum, every rent rise is yours - Selling the family home to rent: why the 24-month exemption doesn't apply LYN'S FIGURES ARE ILLUSTRATIVE: single, 67, no other income, $30,000 of car and contents, rent $800 a fortnight, minimum 5% drawdown. Figures are the rates from 20 September 2026. Assets test limits next change on 1 July 2027; Rent Assistance and pension rates next change on 20 March 2027. Subscribe: https://www.youtube.com/@aussiewealthwithemma?sub_confirmation=1 Watch Next: https://www.youtube.com/watch?v=bPFM-gEf2tk GENERAL ADVICE DISCLAIMER This video is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal financial advice. Centrelink outcomes depend on your own circumstances - check your position with Services Australia or speak with a licensed financial adviser before acting. A note on how this is made: Every script starts with real research and is checked against current ATO and Services Australia figures - that part isn't automated. AI tools produce the narration and visuals. I write, verify, and stand behind every word. Thanks for being here. #AussieWealth #Superannuation #RetirementAustralia #AgePension #RentAssistance #RentingInRetirement #Centrelink #RetirementPlanning