The Age Pension New Rates 2025 in Australia bring welcome relief for thousands of retirees struggling with the rising cost of living. As of 20 October 2025, eligible single pensioners will now receive $1,178.70 per fortnight, while each member of a couple will receive $888.50 per fortnight, a combined total of $1,777.00.
This increase comes as part of the government’s regular indexation system, which adjusts payments twice a year in March and October to reflect inflation, wage growth, and general living costs. The revision ensures that older Australians continue to enjoy a stable income and maintain their financial independence post-retirement.
What is the Age Pension in Australia?
The Age Pension is a key part of Australia’s three-pillar retirement income system, designed to support citizens who have reached pension age and meet certain financial and residency criteria. It acts as a safety net for retirees who can no longer fully support themselves through superannuation or personal savings.
The pension is made up of three parts:
- Base rate – the main payment amount.
- Pension supplement – to help with regular expenses.
- Energy supplement – to offset rising utility costs.
For many older Australians, this payment remains essential for covering everyday living expenses such as rent, healthcare, and groceries.
Current Age Pension Rates (as of 20 October 2025)
The new pension rates were implemented under the normal indexation adjustment system. Here’s the updated breakdown for single and couple pensioners:
| Category | Full Pension (per fortnight) |
| Single | $1,178.70 |
| Each member of a couple | $888.50 |
| Combined couple rate | $1,777.00 |
These rates include the base pension along with the pension supplement and energy supplement.
Why the Pension Increase Matters?
The increase in Age Pension rates is crucial for maintaining the standard of living among retirees, especially amid rising inflation, housing costs, and essential expenses. The adjustments ensure that seniors are not left behind as costs climb nationwide.
Key reasons why the program is vital:
- Prevents retirees from falling into poverty after leaving full-time work.
- Provides a reliable income base during uncertain economic conditions.
- Supports the retirement income system, balancing superannuation and savings.
- Helps pensioners afford housing, food, utilities, and transportation.
With Australia’s population aging rapidly, maintaining the sustainability and adequacy of the Age Pension has become a core government priority.
Eligibility Criteria for Age Pension Australia
To qualify for the Age Pension in 2025, individuals must meet age, residency, income, and asset requirements set by Services Australia.
- Must be 67 years or older.
- Must satisfy Australian residency requirements.
- Must pass the income test – income must fall below the set threshold.
- Must pass the assets test – total assets must be under the government-defined limit.
Income and asset limits differ based on homeownership status. Homeowners generally have lower asset thresholds than non-homeowners. Couples are assessed jointly, while singles are assessed individually.
If your income or assets exceed the limits for the full pension, you may still receive a partial pension.
Payment Schedule for Age Pension
The Age Pension is paid fortnightly to eligible recipients. These payments are automatically deposited into pensioners’ bank accounts.
- Payments occur every two weeks.
- Rates include pension supplement and energy supplement.
- Indexation happens twice yearly – in March and September.
- The next scheduled rate review is on 20 March 2026, depending on inflation, wage growth, and cost-of-living indexes.
Updated Income and Asset Test Limits
- The full pension asset limit for a homeowner single is now $321,500, and for a non-homeowner single, it’s $579,500.
- For couples, the thresholds are higher and assessed jointly.
- To receive the full pension, a single person’s income must be below $218 per fortnight, and couples must have a combined income below $380 per fortnight.
Pension amounts gradually reduce as income or assets increase beyond these limits. Additionally, work bonus provisions allow pensioners to earn a modest income without reducing their payment immediately.
New Age Pension Rates 2025
- The maximum pension rate has risen by $29.70 per fortnight for singles and $22.40 per fortnight for couples.
- Revised income and asset tests reflect updated living costs.
- Automatic adjustments continue to ensure payments remain fair and in line with inflation and wage growth.
- The government’s ongoing review focuses on keeping pension values aligned with the Pensioner and Beneficiary Living Cost Index (PBLCI) and the Consumer Price Index (CPI).
This systematic adjustment ensures that pensions don’t lose value over time and help retirees meet everyday financial demands.
The Importance of Regular Indexation
Indexation plays a critical role in maintaining the real value of pension payments. Every six months, the government evaluates economic factors, including wages, inflation, and living expenses , to determine the adjustment. This process ensures that pensioners continue to have access to stable financial support, especially in the face of rising utility bills, grocery prices, and medical costs.
FAQs for Australia Age Pension New Rates 2025
You must be 67 years or older to receive the Age Pension in 2025.
Rates are reviewed and increased twice a year, in March and October — based on inflation and wage data.
Yes, under the Work Bonus Scheme, you can earn a limited income without reducing your pension payment immediately.
Singles receive $1,178.70 per fortnight, while couples receive $888.50 each (a combined $1,777.00).
Your payment depends on your income and assets, with the lower amount between the two tests determining your final entitlement.