The Australian Government has finally granted the approval of increasing Age Pension payments, effective September 2025. This is the normal biannual indexation and is meant to keep pace with increasing inflation and rising cost of living. Thousands of pensioners spread across Australia will find relief through this price increase.
How Much Will the Pension Go Up?
As from September 20, 2025, the maximum basic Age Pension will be increased by an amount of about $32.70 per fortnight for singles and $49.40 for couples combined. That will make the fortnightly payment approximately $1,116.30 for single pensioners and $1,682.80 for couples (combined), including pension and energy supplements. These amounts will change slightly depending on one’s assets, income, and whether they are living alone, with others, or in other circumstances.
Important Payment Dates to Keep in Mind
This next scheduled pension increase will be effective from September 20, 2025. After this date, payments will begin using updated calculations, depending on the payment cycle of the recipient. Pensioners who get their payments fortnightly by Centrelink should expect to see the new payment amount on their first fortnightly payment after the date of the increase.
No Change to Eligibility Criteria
To be eligible for the Age Pension, Australians must meet the age and residency criteria. The qualifying age is currently 67 for persons born after January 1, 1957. Also to be eligible, applicants must be Australian residents and must have resided within Australia for ten years, five of which must be continuous.
There are also income and asset tests to be considered in respect of eligibility. Centrelink will continue to have assessments made of each applicant’s financial situation for determination of rate of payment and, in cases where a potential recipient is above set limits, the person may receive only a partial pension or be deemed ineligible.
What This Means for Retirees
The timing of this pension increase is pretty good indeed, given that many seniors are having a hard time meeting their day-to-day living expenses due to inflation and housing pressures. Indexation is intended to ensure that the cost of essential goods and services actually goes up with the Age Pension, providing pensioners with a little greater stability and peace of mind.
Financial counselors would suggest that with this increase, retirees start looking at their budgets and alternate eligibility for rent assistance or energy rebates, pharmaceutical benefits, and other concessions that may also be subject to change.
Keep You Updated via Centrelink and MyGov
Pensioners will need to check for any communication as regards their payments on their MyGov and Centrelink accounts. These changes will be automatically put in place, and people need not be concerned unless they have been specifically asked by Services Australia to take action.
The confirmation of this Age Pension increase will mean that as of this September, a few dollars extra will definitely be there to support retirement-aged Australians who qualify.