Millions of Australian retirees are set to see a welcome boost to their Age Pension starting September 20, 2025. As part of the government’s biannual indexation process, pension rates will rise to help retirees keep up with living costs. Single pensioners and couples alike will benefit, with couples potentially receiving over $1,700 extra annually.
Age Pension Payment Boost
The new rates come into effect automatically—no application is needed. Here’s what pensioners can expect:
- Single pensioners: Maximum full rate rises to $1,178.70 per fortnight (up $29.70)
- Couples living together: Combined rate increases to $1,777.00 per fortnight (up $44.80)
- Each partner in a couple: Receives $888.50 per fortnight
The increase ensures pensioners maintain purchasing power, with adjustments based on inflation, wage growth, and pensioner-specific living costs.
Table: Age Pension Rates from 20 September 2025
| Pension Type | Amount per Fortnight | Increase per Fortnight | Approximate Annual Total |
|---|---|---|---|
| Single (max full rate) | $1,178.70 | $29.70 | $30,646 |
| Couple (each) | $888.50 | $22.40 | $23,101 |
| Couple (combined) | $1,777.00 | $44.80 | $46,202 |
Income and Asset Test Adjustments
Alongside the payment increase, income and asset thresholds have also been raised:
- Income limits for full pension:
- Singles: $218 per fortnight
- Couples combined: $380 per fortnight
- Asset limits: Slightly increased to allow retirees to hold more financial and property assets without reducing payments
However, some pensioners may see partial offsets due to changes in deeming rates, which affect how financial investments are assessed for pension eligibility. Around 180,000 retirees may experience minor adjustments, but most will benefit from the overall increase.
Future Pension Reviews
The next Age Pension review is scheduled for March 2026. Future adjustments will continue to factor in:
- Consumer Price Index (CPI)
- Average wage growth
- Pensioner-specific living cost index
While increases are common, they are not guaranteed every year and depend on broader economic conditions.
Quick Tips for Pensioners
- Check your updated pension rate via your Centrelink online account or app.
- Review your income and assets to understand how the increase affects your payment.
- Plan your budget with the new fortnightly rates to make the most of the boost.
FAQs
Q1: When will the Age Pension increase take effect?
The increase starts on 20 September 2025.
Q2: How much will single pensioners receive?
Single pensioners can now get up to $1,178.70 per fortnight, a $29.70 increase.
Q3: Do couples see a higher combined payment?
Yes, couples living together will receive $1,777.00 per fortnight, up $44.80.
Q4: Do pensioners need to apply for the increase?
No, the adjustment is automatic.
Q5: Will income or assets affect the new pension rate?
Yes, thresholds for income and assets have been raised, but deeming rate changes may affect some recipients.
Conclusion
The September 2025 Age Pension increase brings meaningful financial relief for Australian retirees, helping them cope with rising living costs. With higher income and asset thresholds, more pensioners can benefit fully from the adjustment. Check your Centrelink account to see how the new rates apply to you and plan ahead to maximize this boost in retirement income.