In March 2025, the Australian Government will implement an increase in the Age Pension to assist retirees in managing the rising cost of living.

This adjustment is part of the regular indexation process to ensure that pension payments keep pace with inflation and wage growth. ​

Understanding the Age Pension

The Age Pension is a government-provided income support designed to assist older Australians in covering their basic living expenses during retirement. It serves as a safety net for those who may not have sufficient superannuation or other income sources.​

Current Payment Rates

As of September 2024, the maximum Age Pension rates are:​

• Single Pensioners: $1,144.40 per fortnight​
• Couple Pensioners (combined): $1,725.20 per fortnight​

These amounts include the base pension rate, the pension supplement, and the energy supplement. ​

Upcoming Increase

The next scheduled indexation of the Age Pension is set for March 20, 2025. While the exact increase will be determined based on the highest of the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI), current projections suggest a modest rise due to lower inflation rates.

Estimates indicate an increase of approximately 0.4%, equating to an additional $4.52 per fortnight for singles and $6.82 for couples.

Eligibility Criteria

To qualify for the Age Pension, applicants must meet specific requirements:

1. Age Requirement

Applicants must be 67 years or older.

2. Residency Requirements

• Australian Resident: Must be residing in Australia at the time of application.​

• Minimum Residency Period: Have lived in Australia for at least 10 years, with at least 5 years of continuous residency. ​

Note: Exceptions may apply for certain individuals, such as refugees or those covered by international social security agreements.

3. Income and Assets Test

The Age Pension is means-tested, meaning both income and assets are assessed to determine eligibility and payment rates.

Income Test:

• Singles: Full pension if income is less than $212 per fortnight; part pension available if income is below $2,500.80 per fortnight.
• Couples (combined): Full pension if combined income is less than $372 per fortnight; part pension available if combined income is below $3,822.40 per fortnight.

Assets Test:

Homeowners:

• Singles: Full pension if assets are less than $314,000; part pension available if assets are below $695,500.
• Couples: Full pension if combined assets are less than $470,000; part pension available if assets are below $1,045,500.

Non-Homeowners:

• Singles: Full pension if assets are less than $566,000; part pension available if assets are below $947,500.
• Couples: Full pension if combined assets are less than $722,000; part pension available if assets are below $1,297,500.

How to Apply

If you believe you meet the eligibility criteria, follow these steps:

1. Prepare Necessary Documents: Gather proof of age, identity, residency, and details of income and assets.​
2. Set Up a myGov Account: Ensure you have a myGov account linked to Centrelink.​
3. Submit Your Application: Applications can be lodged online through your myGov account or by visiting a Services Australia service centre.​
4. Await Assessment: Processing times may vary. Ensure all information is accurate to avoid delays.​

Payment Schedule and Important Dates

Age Pension payments are made fortnightly. The exact payment date may vary based on individual circumstances and payment arrangements. The next scheduled review and potential adjustment of the Age Pension rates is set for March 20, 2025.​

Common Mistakes to Avoid

• Incorrect Information: Ensure all details match your official records.​
• Missing Documentation: Always provide accurate income and asset declarations.​
• Failure to Report Changes: Report any changes in income, assets, or living arrangements promptly to avoid overpayments or penalties.​

The upcoming increase in the Age Pension reflects the Australian Government’s commitment to supporting retirees amid rising living costs.

By understanding the eligibility criteria, payment rates, and application process, eligible Australians can ensure they receive the financial support they deserve. Staying informed about these updates is crucial for effective financial planning during retirement.​

FAQs

Who is eligible for the $1,725 Age Pension payment?

Australians aged 67 or older, meeting residency and income/assets test requirements, qualify for the pension.

When will the Age Pension increase take effect?

The next scheduled increase will take effect on March 20, 2025, following the regular indexation process.

How can pensioners apply for the Age Pension?

Eligible individuals can apply online via myGov, at a Centrelink service center, or through Services Australia.