Good news for Australia’s retirees: the Age Pension payments have officially increased from 20 September 2025. This adjustment, part of the government’s biannual indexation, helps ensure pension payments rise in line with living costs and wages.
For more than 2.6 million older Australians, even a modest increase can mean the difference between paying bills on time, keeping the fridge full, or cutting back on essentials.
New Age Pension Rates (From 20 September 2025)
The updated maximum fortnightly rates, including the pension and energy supplements, are:
| Type of Pension | Maximum Fortnightly Rate | Increase |
|---|---|---|
| Single Pensioner | $1,178.70 | +$29.70 |
| Couple (each) | $888.50 | +$22.40 |
| Couple Combined | $1,777.00 | +$44.80 |
Note: Actual amounts may be lower depending on income, assets, and residency status.
Why the Increase Matters
The Age Pension is the main source of income for many retirees. While some rely on superannuation or savings, rising living costs have left millions heavily dependent on government support.
Indexation protects pensioners by:
- Keeping payments aligned with inflation and wage growth
- Ensuring retirees can afford essentials like food, rent, and electricity
- Providing stability and security during retirement
Who Qualifies for the Age Pension?
To be eligible for the Age Pension, you must:
- Be 67 years or older
- Meet Australian residency requirements
- Pass both the income test and assets test
If you exceed the thresholds, you may still receive a part pension, which reduces as income or assets increase.
Income Test (September 2025)
- Singles: Must earn less than about $218 per fortnight to receive the full pension
- Couples (combined): Must earn less than about $380 per fortnight
Asset Test (September 2025)
- Single homeowner: Full pension if assets are below $321,500
- Single non-homeowner: Full pension if assets are below $579,500
- Couple homeowners (combined): Full pension if assets are below $482,500
- Couple non-homeowners (combined): Full pension if assets are below $740,500
Payment Schedule
- Fortnightly payments are made directly into pensioners’ bank accounts
- Indexation occurs twice a year – March and September
- The next adjustment will take place on 20 March 2026
Latest Updates
- Singles gained $29.70 per fortnight
- Each member of a couple gained $22.40 per fortnight
- Income and asset thresholds updated to reflect inflation
- Work Bonus rules remain, allowing pensioners to earn some extra income without it affecting their pension
FAQs
How much is the Age Pension for a single person in 2025?
$1,178.70 per fortnight, including supplements.
How much do couples receive?
$888.50 each per fortnight, or $1,777 combined.
When did the new rates take effect?
On 20 September 2025.
What are the new asset limits for full pensions?
$321,500 for single homeowners and $579,500 for single non-homeowners. Couples have higher thresholds.
Do I need to apply for the increase?
No, the adjustment is automatic for all eligible recipients.
Conclusion
The Age Pension increase in September 2025 may not feel huge, but for millions of retirees, it provides crucial breathing room against rising living costs. With payments now at $1,178.70 for singles and $888.50 each for couples, the indexation ensures older Australians can live with dignity and stability in retirement.