Great news for Australian pensioners! The Age Pension will increase by $841 in 2025, with recipients receiving an extra $21 per fortnight starting January 1, 2025.
This adjustment helps pensioners keep up with rising living costs and ensures better financial stability.
Here’s everything you need to know about the new pension rates, payment schedule, eligibility criteria, and how to apply.
Key Details of the 2025 Age Pension Increase
| Aspect | Details |
|---|---|
| Annual Increase | $841 per year |
| Fortnightly Increase | $21 extra per fortnight |
| Effective Date | January 1, 2025 |
| Eligibility Age | 67 years |
| New Fortnightly Rates | Single: $1,144.40 / Couple (combined): $1,725.20 |
| Additional Bonus | One-time $21 cost-of-living bonus |
| Next Adjustment Date | March 20, 2025 |
| Official Resource | Services Australia – Age Pension |
What Is the Age Pension?
The Age Pension is a government-funded retirement payment for Australians aged 67 and over who meet residency, income, and asset requirements.
The pension is adjusted twice a year (March and September) to reflect inflation and cost-of-living increases.
Breakdown of the New Age Pension Rates for 2025
From January 1, 2025, Age Pension recipients will receive:
For Singles:
- Previous Rate: $1,116.30 per fortnight
- New Rate: $1,144.40 per fortnight
- Increase: $28.10 per fortnight (Annual increase: $841)
For Couples (Combined):
- Previous Rate: $1,682.80 per fortnight
- New Rate: $1,725.20 per fortnight
- Increase: $42.40 per fortnight (Annual increase: $1,102.40)
These new rates include the basic pension amount, pension supplement, and energy supplement to maximize support for pensioners.
Eligibility Criteria for the Age Pension in 2025
To qualify for the Age Pension, applicants must meet the following requirements:
1. Age Requirement
- Must be 67 years or older as of 2025.
2. Residency Status
- Must be an Australian citizen or permanent resident.
- Must have lived in Australia for at least 10 years, with at least 5 continuous years.
3. Income Test
- The pension is reduced if income exceeds a set threshold:
| Filing Status | Maximum Income Before Reduction |
|---|---|
| Single | $204 per fortnight |
| Couple (combined) | $360 per fortnight |
- Pension is reduced by 50 cents for every $1 earned above the limit.
4. Assets Test
- The total value of assets (excluding your primary home) must be below:
| Filing Status | Maximum Asset Limit |
|---|---|
| Single Homeowner | $301,750 |
| Couple Homeowners | $451,500 |
| Single Non-Homeowner | $543,750 |
| Couple Non-Homeowners | $693,500 |
- Exceeding these limits may result in reduced payments or ineligibility.
How to Apply for the $841 Age Pension Increase and $21 Bonus?
If you’re eligible for the Age Pension, follow these steps to apply:
1. Apply Online
- Visit myGov and link your Centrelink account.
- Complete the Age Pension application form online.
2. Apply by Phone
- Call 13 23 00 to apply with phone assistance.
3. Apply In-Person
- Visit your nearest Services Australia office with the required documents.
Documents Required:
- Proof of identity (passport, driver’s license).
- Income and asset statements.
- Residential details.
Additional Benefits for Pensioners in 2025
In addition to the $841 pension increase, recipients may also qualify for:
1. Energy Supplement
- Helps pensioners cover rising electricity and gas costs.
2. Commonwealth Seniors Health Card
- Provides discounts on prescriptions, medical services, and transport.
3. Rent Assistance
- Extra payments for low-income renters.
4. Discounted Public Transport
- Reduced fares for pensioners on buses, trains, and ferries.
5. One-Time $21 Cost-of-Living Bonus
- A special $21 bonus included in the first payment of 2025.
Full Age Pension Payment Schedule for Early 2025
| Payment Date | Fortnightly Amount (Single) | Couple (Combined) |
|---|---|---|
| January 3, 2025 | $1,144.40 | $1,725.20 |
| January 17, 2025 | $1,144.40 | $1,725.20 |
| January 31, 2025 | $1,144.40 | $1,725.20 |
| February 14, 2025 | $1,144.40 | $1,725.20 |
| February 28, 2025 | $1,144.40 | $1,725.20 |
Payments are automatically deposited into the recipient’s nominated bank account.
The $841 Age Pension increase and $21 fortnightly bonus for 2025 provide essential financial relief for pensioners, ensuring they keep up with the rising cost of living.
With automatic payments beginning January 1, 2025, pensioners should update their Centrelink details and check their eligibility to maximize their benefits.
For further details, visit the Services Australia – Age Pension website.
