From 1 October 2025, the Australian Government will boost the Age Pension to a maximum of $1178 per fortnight. This change comes as part of the government’s regular indexation process, which ensures pension payments keep up with the cost of living and wage growth.
For many retirees struggling with rising expenses, this increase provides much-needed relief and support.
Why the Age Pension Is Increasing
The government reviews pension payments twice a year – in March and October – adjusting them in line with:
- Inflation (rising cost of essentials like food, housing, and energy)
- Wage growth (ensuring pensioners aren’t left behind compared to working Australians)
With Australians facing higher grocery bills, energy costs, and medical expenses, this October 2025 increase aims to help seniors maintain financial stability.
New Pension Rates from October 2025
Here’s what changes from 1 October 2025:
| Pension Type | New Maximum Rate (per fortnight) | Notes |
|---|---|---|
| Single pensioner | $1178 | Automatic increase, no need to reapply |
| Couple (combined) | Adjusted upwards | Final amount depends on income & assets test |
All current pensioners will receive the increase automatically in their regular payment cycle.
Who Qualifies for the $1178 Age Pension?
To receive the new maximum payment, you must meet the standard Age Pension eligibility rules:
- Age requirement – You must have reached the qualifying Age Pension age (currently 67 years).
- Residency – Generally, you must have lived in Australia for at least 10 years (with at least 5 years continuously).
- Means testing – Your income and assets must fall below set limits under the government’s income and assets test.
No new application is needed. If you already receive the Age Pension, the updated rate will apply automatically.
When Will the New Payments Start?
- The new rates take effect from 1 October 2025.
- Payments will appear in your first full fortnightly cycle after this date.
- By mid-October 2025, all eligible pensioners will see the increase in their bank accounts.
What This Means for Retirees
The increase to $1178 a fortnight for singles may not fully offset inflation, but it will:
- Ease pressure on household budgets
- Help cover essentials like food, utilities, and healthcare
- Provide greater financial security for seniors on fixed incomes
For many retirees, this increase represents a vital buffer against rising living costs.
Government’s Ongoing Support for Seniors
Beyond this indexation, the government has also flagged longer-term support measures for retirees, including:
- Energy rebates to reduce power bills
- Healthcare assistance to cut out-of-pocket costs
- Policy reviews to ensure seniors can retire with dignity and security
FAQs – $1178 Age Pension Increase 2025
1. Do I need to apply for the increase?
No. If you already receive the Age Pension, the new rate will be applied automatically.
2. When will I see the higher payment?
You’ll see it in your first full fortnightly payment after 1 October 2025.
3. Will couples get $1178 each?
No. Couples receive a different combined rate, adjusted according to the means test.
4. Who qualifies for the Age Pension increase?
Anyone who meets the age, residency, and means testing rules under current pension laws.
5. Is this a one-off payment or permanent increase?
It’s a permanent increase as part of the government’s indexation process.
Final Thoughts
The $1178 Age Pension increase from October 2025 marks a significant step in helping Australian seniors cope with the rising cost of living. While it may not solve every financial challenge, it provides reassurance and stability for older Australians.
If you’re already on the Age Pension, you don’t need to take any action—your payments will adjust automatically. For those nearing retirement age, it’s worth checking your eligibility and planning ahead.