The Age Pension remains one of the most vital forms of income support for older Australians, and in 2025, significant updates have been introduced to keep pace with the rising cost of living. These include new pension payment rates, changes to eligibility rules, and streamlined processes for receiving fortnightly payments via Centrelink.
Whether you’re already receiving the pension or planning for retirement, it’s essential to understand how these updates will affect your finances and what steps you should take to ensure you’re getting the full benefit.
2025 Age Pension Payment Rates Announced
From March 2025, the Australian Government implemented revised Age Pension payment rates. These are adjusted twice annually in March and September based on movements in the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index to ensure pensions keep pace with inflation and average wage growth.
As of March 2025, the new pension payment amounts are as follows:
| Recipient Type | Fortnightly Rate | Monthly Equivalent | Annual Total |
|---|---|---|---|
| Single | $1,113.10 | $2,413.05 | $28,956.60 |
| Couple (each) | $873.40 | $1,892.37 | $22,708.80 |
| Couple (combined) | $1,746.80 | $3,784.74 | $45,417.60 |
These totals include the base pension, the Pension Supplement, and the Energy Supplement. For eligible renters, Rent Assistance may be added on top of these base payments, depending on individual living arrangements and income.
Eligibility Criteria in 2025
To qualify for the Age Pension in 2025, applicants must meet updated age, residency, and financial conditions. The qualifying age has now fully transitioned to 67 years for all new applicants. This means anyone turning 67 in or after July 2025 may now apply, provided other criteria are met.
Applicants must also be permanent residents of Australia and have lived in the country for at least ten years, including at least five years of continuous residency. In some cases, exemptions may apply due to international social security agreements.
The amount of pension received depends on two separate means tests: the income test and the assets test. The lower result from these two tests is used to determine your final entitlement. The income test measures any money earned through employment or investments, while the assets test assesses the value of items such as property (excluding the family home), superannuation, and savings.
Both thresholds were increased slightly in 2025 to reflect inflation, providing a bit more flexibility for pensioners with moderate income or savings.
Centrelink Payment Schedule and Delivery
Age Pension payments are delivered on a fortnightly basis via Centrelink. Payments are generally made directly into the recipient’s nominated bank account, and pensioners can track their payments or update their details through their myGov account.
The 2025 Centrelink payment calendar remains on a Wednesday cycle, but payments may be issued earlier in the event of public holidays. It is crucial for pensioners to ensure their personal information is current with Centrelink to avoid any payment disruptions.
Those planning to travel or live overseas temporarily should be aware that their payments may be affected after six weeks abroad, depending on international agreements or the duration of their absence.
Extra Support and Concessions for Pensioners
In addition to the regular pension, eligible seniors may receive several additional benefits in 2025. These include the Pensioner Concession Card, which offers discounted medicines, utility bills, public transport fares, and access to bulk-billed medical services.
Pensioners may also benefit from the Work Bonus, which allows them to earn up to $300 per fortnight from work without it affecting their pension. This encourages older Australians to stay connected to the workforce without being penalised financially.
Furthermore, various state and federal energy rebates are available in 2025 to help with the increasing cost of electricity and gas. Many of these concessions are automatically applied when you hold the appropriate concession card.
Final Thoughts
With the rising cost of living continuing to impact everyday Australians, the updated Age Pension rates and eligibility adjustments for 2025 are intended to provide a safety net that remains relevant and responsive. Whether you’re currently receiving the pension or approaching retirement age, it’s essential to stay informed and regularly review your entitlements to make the most of the support available.