Living separately from your spouse or partner does not automatically mean you are treated as single for Age Pension purposes. What matters is whether your relationship has ended, whether you remain a couple despite living apart, or whether you are living separately because of illness or care needs.
Your relationship status can affect both the Age Pension rate you receive and how your income and assets are assessed.
This guide explains how the Age Pension works if you and your partner live separately, including relationship breakdown, living apart while remaining a couple and separation because of illness.
Does living separately mean I’m single?
No. Having different addresses does not necessarily mean Services Australia will consider you single.
If your relationship has ended and Services Australia accepts that you are separated, you will generally be treated as single for Age Pension purposes. You do not need to be divorced for this to happen.
However, if you live apart but remain in a relationship, you may continue to be treated as a couple. Different rules can also apply if you are unable to live together because of illness or care needs.
How does Services Australia decide if we are separated?
For Age Pension purposes, separation generally means that your relationship as a couple has ended, rather than simply that you live at different addresses.
Services Australia can consider a range of factors when deciding whether you are still a member of a couple. These can include:
- your financial arrangements
- the nature of your household and living arrangements
- the social aspects of your relationship
- whether you have a sexual relationship
- the nature of your commitment to each other.
No single factor necessarily determines the outcome. Services Australia looks at your circumstances as a whole.
You do not need to be legally divorced to be treated as separated for Age Pension purposes. If your relationship has genuinely ended, Services Australia can recognise the separation before any divorce or financial settlement is finalised.
What happens if our relationship has ended?
If your relationship has ended and Services Australia considers you separated, you will generally be treated as a single person for Age Pension purposes.
If you meet all the Age Pension eligibility requirements, you can receive the single Age Pension rate rather than the lower rate paid to each member of a couple.
Your entitlement will also generally be assessed using the single person limits under the Income test and Assets test, rather than combining your income and assets with those of your former partner. Assets you still own jointly with your former partner, such as a bank account or an investment property, are generally assessed based on your share.
This does not necessarily mean your pension will increase. Although the maximum single pension rate is higher than the rate for each member of a couple, the income and assets limits for a single person are lower than the combined limits for a couple. Your individual financial circumstances will determine how much Age Pension you receive.
What if we live apart but are still a couple?
Living at different addresses does not automatically change your relationship status for the Age Pension.
For example, you might live apart because of work, family responsibilities or another temporary arrangement while continuing to have a relationship as a couple. In these circumstances, Services Australia may continue to treat you as partnered.
If you remain a couple for Age Pension purposes, your income and assets will generally continue to be assessed under the rules for couples. Simply maintaining separate homes does not by itself entitle each of you to the single Age Pension rate.
What is an illness-separated couple?
Different rules can apply if you and your partner cannot live together because of illness or care needs. Services Australia may regard you as an illness-separated couple.
This can occur, for example, when one member of a couple permanently moves into residential aged care while the other remains living at home.
An illness-separated couple remains a couple for social security purposes. Your relationship has not ended simply because illness means you can no longer live together.
However, each member of an illness-separated couple can receive the single Age Pension rate, which is higher than the rate for each member of a couple living together. Your income and assets are still assessed together, and because the pension rate is higher, the cut-off points where the pension stops are higher too.
This is different from a relationship breakdown. You are not simply treated as two unrelated single pensioners because one partner has moved into residential care.
What if we’re separated but still live in the same home?
You can be separated even if you and your former partner continue to live at the same address. This is sometimes described as being separated under one roof.
This can happen for financial, housing, family or practical reasons. The important issue for Services Australia is whether your relationship as a couple has genuinely ended, rather than simply whether one person has moved out.
Services Australia may ask for information about your circumstances to establish whether you are genuinely separated. This can include information about your financial arrangements, household arrangements and the nature of your ongoing relationship.
How does living separately affect the Age Pension?
The effect depends on why you are living separately and how Services Australia classifies your relationship.
- If your relationship has ended, you will generally be assessed as a single person and the single Age Pension rate and means-test limits will apply.
- If you live apart but remain a couple, you will generally continue to be assessed as a couple.
- If you are an illness-separated couple, you remain a couple and your income and assets are assessed together, but each of you can receive the single pension rate.
In every case, you still need to meet the other Age Pension eligibility requirements, including the relevant Income test and Assets test.
Examples
Example 1: relationship breakdown
Bill and Irene have separated after their relationship broke down. Bill has moved out of the family home and they intend to arrange a financial settlement and divorce, but neither has been finalised yet.
Services Australia accepts that their relationship has ended. Bill and Irene are therefore assessed as single people for Age Pension purposes. Each person’s income and assets are assessed separately using the single person limits, and each can receive the single Age Pension rate if they meet the eligibility requirements.
They do not need to wait until they are divorced to be treated as separated.
Example 2: living apart but still a couple
Rod and Sandy are married and remain in a relationship, but Rod spends much of the year living interstate for work. They maintain their relationship and continue to manage their finances and lives as a couple.
The fact that Rod and Sandy spend significant periods living at different addresses does not automatically make them single for Age Pension purposes. If Services Australia continues to regard them as a couple, their income and assets are assessed under the rules for couples and they receive the pension rate that applies to members of a couple.
Example 3: illness-separated couple
Tom and Margaret have been married for 50 years. Margaret develops advanced Alzheimer’s disease and permanently moves into residential aged care because Tom can no longer provide the level of care she needs. Tom continues to live in their home and they remain a couple.
Services Australia may assess Tom and Margaret as an illness-separated couple. They remain a couple for Age Pension purposes and their income and assets are still assessed together, but each of them can receive the single pension rate.
This is different from Bill and Irene’s situation because Tom and Margaret’s relationship has not ended. They are living apart because of Margaret’s care needs rather than a relationship breakdown.
Do I need to tell Services Australia if we separate?
Yes. A change in your relationship status can affect both your Age Pension rate and the way your income and assets are assessed.
You should tell Services Australia if you separate from your partner or if your living arrangements change in a way that could affect your relationship status. Services Australia may ask you for information about your circumstances before deciding whether you should be assessed as single, as a member of a couple or as part of an illness-separated couple.
Summary
Living separately does not automatically mean you are single for Age Pension purposes. What matters is whether your relationship has ended and why you are living apart.
If your relationship has ended, you will generally be assessed as a single person. If you live apart but remain in a relationship, you may continue to be assessed as a couple. If illness or care needs prevent you from living together, you may be assessed as an illness-separated couple, where your income and assets are assessed together but each of you can receive the single pension rate.
The information in this guide is general in nature.