Retirement should be a time to relax, not stress about money. That’s why the Australian Government offers the Age Pension, a financial safety net for older Australians. Recent updates mean that people aged 65 and above may now qualify under new rules.
If you’re nearing retirement, it’s important to understand who is eligible, how much you can receive, and how to apply. This guide breaks everything down in simple terms so you can plan ahead with confidence.
What Is the New Pension at 65?
The Age Pension is a regular payment from the government that helps older Australians cover living costs. It’s designed for people who don’t have enough income or savings to fully support themselves in retirement.
The new pension rules focus on:
- Age requirement – 65 years and older
- Residency – Must meet minimum years living in Australia
- Means testing – Your income and assets are checked
The goal is to ensure that support goes to those who need it most.
Age Requirement: Who Can Apply?
- You must be 65 years or older.
- Payments are not automatic – you must apply.
- Proof of age (such as a birth certificate or passport) is required.
Tip: Apply as soon as you reach the age threshold, as assessments can take time.
Residency Rules: Where You Must Live
To qualify, you must:
- Be an Australian citizen or permanent resident.
- Have lived in Australia for at least 10 years total.
- Out of those 10 years, at least 5 must be continuous.
There are exceptions under international social security agreements, which allow you to use time lived overseas toward your eligibility.
Income and Assets Test: How Much You Can Earn or Own
The Age Pension is means-tested. This means both your income and assets are assessed.
Here are the current limits (subject to government updates):
| Test Type | Limit for Singles | Limit for Couples (combined) |
|---|---|---|
| Income Test | $5,200 per year | $8,600 per year |
| Assets Test | $270,500 | $405,000 |
- If you earn more or have assets above these limits, your pension may be reduced.
- If you exceed the upper thresholds, you may not qualify at all.
Example: If you own a house and have savings of $200,000, you may still qualify, but if your savings exceed the set limit, payments could be reduced.
How to Apply for the Pension
Applying is simple but requires preparation:
- Gather documents – ID, proof of residency, financial statements.
- Submit application – online via myGov or in-person at a Centrelink office.
- Assessment – government reviews your income, assets, and circumstances.
- Approval – if successful, payments are made fortnightly.
Payments are adjusted annually to keep up with inflation and cost of living.
Extra Benefits You May Qualify For
In addition to the Age Pension, you may also receive:
- Rent Assistance – for those who pay rent privately.
- Pensioner Concession Card – discounts on medicine, transport, and utilities.
- Health Care Benefits – cheaper medical services and prescriptions.
- Utility Rebates – savings on electricity, gas, and water bills.
These extras can significantly reduce your day-to-day expenses.
Is the Pension Enough for Retirement?
While the pension is a lifeline, it may not cover all your needs. Most financial experts recommend combining it with:
- Superannuation savings
- Investments (shares, property, term deposits)
- Private savings
Planning ahead in your 40s and 50s ensures you’re more financially secure in retirement.
Frequently Asked Questions (FAQs)
1. Can I get the Age Pension if I still work part-time?
Yes. You can work and still receive the pension, but your income will be assessed. If you earn above the threshold, payments may reduce.
2. Do I need to reapply every year?
No. Once approved, your pension continues, but your income and assets are reviewed regularly to check eligibility.
3. What if I lived overseas for several years?
Your time overseas may reduce your eligibility unless covered by an international agreement. Check with Services Australia.
4. Can couples apply together?
Yes. Couples are assessed together, and the thresholds are higher than for singles.
5. How much is the Age Pension payment?
The exact amount depends on your situation and is updated twice a year. As of 2025, a full pension can be up to around $1,100 per fortnight for singles and $1,650 per fortnight for couples combined (subject to changes).
Final Thoughts
The new Age Pension at 65 is an essential support system for Australians entering retirement. By understanding the eligibility rules, income and asset tests, and application process, you can avoid surprises and plan your finances wisely.
Retirement should be about enjoying life—not worrying about bills. If you’re approaching 65, start preparing your documents early and explore how the Age Pension, along with your superannuation and savings, can give you the security you deserve.