The Australian government is increasing the Age Pension by $841 annually, providing pensioners with an additional $21 per fortnight starting January 1, 2025.
This increase aims to help retirees cope with the rising cost of living and inflation. Millions of older Australians who depend on the pension will benefit from this adjustment.
This article covers the full payment schedule, eligibility criteria, how to apply, and other benefits pensioners can receive.
$841+$21 Age Pension Boost
The 2025 Age Pension increase ensures that pensioners receive extra financial support without needing to reapply. The additional $21 per fortnight will be automatically added to payments.
Summary of the Increase
| Aspect | Details |
|---|---|
| Annual Increase | $841 per year |
| Fortnightly Increase | $21 extra per fortnight |
| Effective Date | January 1, 2025 |
| Eligibility Age | 67 years |
| New Fortnightly Rates | Single: $1,144.40, Couple: $1,725.20 |
| Additional Bonus | One-time $21 cost-of-living bonus |
| Next Adjustment Date | March 20, 2025 |
| Official Resource | Services Australia – Age Pension |
Pension
The Age Pension is a government financial benefit for Australians aged 67 and over who meet residency, income, and asset requirements. It provides financial security for retirees and is adjusted twice a year, in March and September, based on inflation and living costs.
Rates
Starting January 1, 2025, pensioners will receive increased payments:
For Singles:
- Previous Rate: $1,116.30 per fortnight
- New Rate: $1,144.40 per fortnight
- Increase: $28.10 per fortnight ($841 annually)
For Couples (Combined):
- Previous Rate: $1,682.80 per fortnight
- New Rate: $1,725.20 per fortnight
- Increase: $42.40 per fortnight ($1,102.40 annually)
The new rates include the basic pension, pension supplement, and energy supplement to maximize pensioners’ benefits.
Eligibility
To qualify for the Age Pension in 2025, individuals must meet specific criteria:
1. Age Requirement
- Must be 67 years or older in 2025.
2. Residency Status
- Must be an Australian citizen or permanent resident.
- Must have lived in Australia for at least 10 years, with at least 5 consecutive years.
3. Income Test
The government applies an income test to determine pension eligibility:
| Status | Income Limit (Before Reduction) | Reduction Rate |
|---|---|---|
| Singles | Up to $204 per fortnight | 50 cents per $1 above the limit |
| Couples (Combined) | Up to $360 per fortnight | 50 cents per $1 above the limit |
4. Assets Test
The government also considers assets (excluding the primary home).
| Status | Asset Limit (Homeowner) | Asset Limit (Non-Homeowner) |
|---|---|---|
| Single | Up to $301,750 | Up to $543,750 |
| Couple (Combined) | Up to $451,500 | Up to $693,500 |
If income or assets exceed these thresholds, pension payments may be reduced or ineligible.
Application
Eligible Australians can apply through multiple methods:
1. Online Application
- Log in to myGov and link it to Centrelink.
- Complete the Age Pension application online.
2. By Phone
- Call 13 23 00 for assistance with the application.
3. In-Person Application
- Visit a Services Australia center with the required documents.
Required Documents
- Proof of identity (passport, driver’s license)
- Income and asset statements
- Residential details
Benefits
In addition to the pension increase, pensioners may qualify for extra government support:
1. Energy Supplement
- Helps cover rising energy costs.
2. Commonwealth Seniors Health Card
- Provides discounts on prescriptions, medical services, and transport.
3. Rent Assistance
- Financial support for pensioners renting privately.
4. Discounted Public Transport
- Pensioners receive reduced fares on public transport.
5. One-Time $21 Cost-of-Living Bonus
- Included in the first 2025 payment to provide extra financial relief.
Schedule
Age Pension payments are made fortnightly. The first-quarter payment dates for 2025 are:
| Payment Date | Fortnightly Amount (Single) | Fortnightly Amount (Couple) |
|---|---|---|
| January 3, 2025 | $1,144.40 | $1,725.20 |
| January 17, 2025 | $1,144.40 | $1,725.20 |
| January 31, 2025 | $1,144.40 | $1,725.20 |
| February 14, 2025 | $1,144.40 | $1,725.20 |
| February 28, 2025 | $1,144.40 | $1,725.20 |
Payments are automatically deposited into pensioners’ nominated bank accounts.
The 2025 Age Pension increase provides much-needed relief to older Australians facing rising living costs. With additional financial support and extra benefits, pensioners can enjoy a more stable and secure retirement.
