Good news for Australian retirees! Starting October 2025, the Age Pension is getting a $44.80 fortnightly boost for couples and $29.70 for singles, helping seniors keep up with rising living costs. This adjustment, part of Centrelink’s biannual indexation, ensures pensions stay in line with inflation. If you’re an eligible senior, here’s everything you need to know about the new rates, eligibility, and how it impacts your finances.
What’s the New Pension Increase?
As of September 20, 2025, the Australian Government has raised Age Pension rates to match inflation and cost-of-living pressures. Couples will see a combined increase of $44.80 per fortnight ($22.40 each), while singles get an extra $29.70. These changes aim to help retirees cover essentials like healthcare, utilities, and groceries, offering more financial stability in retirement.
The increase is automatic—no application needed for current pensioners.
Updated Pension Rates for 2025
The new rates include the base pension, plus supplements like the Pension Supplement and Energy Supplement. Here’s how it breaks down:
New Fortnightly Pension Rates
| Pension Type | New Rate (Fortnightly) | Increase (Fortnightly) |
|---|---|---|
| Single | $1,178.70 | $29.70 |
| Couple (each) | $888.50 | $22.40 |
| Couple (combined) | $1,777.00 | $44.80 |
| Couple, separated due to illness (each) | $1,178.70 | $29.70 |
Couples separated due to illness receive the single rate, totaling $2,357.40 combined per fortnight.
Who Qualifies for the Age Pension?
To receive the Age Pension and the 2025 increase, you must meet specific criteria. Here’s what’s required:
Eligibility Requirements
- Age: Be 67 or older (for those born on or after January 1, 1957).
- Residency: Have lived in Australia for at least 10 years, including 5 continuous years.
- Income and Assets: Pass Centrelink’s income and assets tests, which may affect your payment amount.
Current pensioners automatically qualify for the increase, while new applicants must meet these standards.
Changes to Deeming Rates and Thresholds
Alongside the pension boost, deeming rates for financial assets have risen. The lower threshold rate is now 0.75% (up from 0.25%), and the upper threshold is 2.75% (up from 2.25%). These changes affect how income from savings or investments is calculated.
Higher income and asset thresholds also mean some retirees with moderate savings or income may qualify for a full or partial pension. However, a small number of part-pensioners might see slight reductions if their assets exceed limits.
When and How Will Payments Start?
The new rates take effect from September 20, 2025, with payments reflecting the increase by early October, following Centrelink’s fortnightly schedule. Funds are deposited directly into your bank account—no action is needed for existing pensioners.
Check your MyGov account for payment dates and ensure your details are up-to-date to avoid delays.
Why This Increase Matters
The $44.80 boost for couples and $29.70 for singles may seem modest, but it’s a meaningful step to ease financial pressures. With costs for healthcare, utilities, and groceries climbing, this increase helps seniors maintain their quality of life. It also supports local economies as retirees spend on essentials, benefiting businesses and communities.
How Seniors Can Prepare
To make the most of the pension increase:
- Verify Your Details: Ensure your Centrelink and bank information is current via MyGov.
- Check Eligibility: New applicants should confirm they meet age, residency, and financial criteria.
- Monitor Updates: Visit the Services Australia website for the latest pension news.
Staying informed ensures you receive every dollar you’re entitled to.
FAQs About the 2025 Age Pension Increase
How much is the Age Pension increase in 2025?
Couples get an extra $44.80 per fortnight ($22.40 each), and singles receive $29.70 per fortnight.
When will the new pension rates start?
The increase begins September 20, 2025, with payments reflecting the boost by early October.
Is the pension increase permanent?
Yes, it’s a permanent adjustment tied to biannual indexation for inflation.
Do I need to apply for the increase?
No, current pensioners receive the boost automatically; new applicants must apply for the Age Pension.
How do deeming rate changes affect my pension?
Higher deeming rates (0.75% lower, 2.75% upper) may slightly adjust how your investment income is calculated, impacting some part-pensioners.