The Abbott government will need the support of the Greens or the Senate crossbench to push its planned changes to the age pension through parliament.
Labor confirmed on Tuesday it will oppose legislation tightening the pensions assets test after consulting with seniors groups and industry superannuation funds.
The decision means about 170,000 pensioners will be denied an extra $15 a week if the measures are voted down.
But about 91,000 retirees - some with non-home assets over $1 million - will retain their part pension while another 235,000 won't have their pension reduced.
Labor argues the impact of the government plan will be broader that it estimates, with half of all people leaving the workforce in the next decade set to be impacted.
Opposition Leader Bill Shorten said hundreds of thousands of people in their 50s and 60s thinking about retiring should get what's available now.
"This is a classic government tactic setting pensioner against pensioner," he told reporters in Canberra.
Labor wants the government to limit superannuation tax concessions for the wealthy, saying that could reap $14 billion over a decade.
The Greens have welcomed the asset test changes but want a broader review of retirement incomes and super tax concessions before supporting the government.
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