The Australian Government has confirmed an increase in Age Pension payments and adjustments to asset limits, effective from 20 March 2025. These changes aim to provide additional financial support to pensioners as part of the government’s ongoing indexation process to keep social security payments in line with inflation and the cost of living.
Here’s everything you need to know about the upcoming changes and how they may affect you.
Increase in Age Pension Payments
From 20 March 2025, Age Pension recipients will receive an increase in their fortnightly payments. The adjustment is part of the government’s biannual pension indexation, which occurs in March and September every year.
New Age Pension Rates from March 2025:
- Single Pensioners: Increasing by $4.60 per fortnight, bringing the total to $1,149.00 per fortnight (or approximately $29,874 per year).
- Couple Pensioners (combined): Increasing by $7.00 per fortnight, with a new total of $1,732.20 per fortnight (or approximately $45,037 per year).
Updated Asset Limits for Age Pension Eligibility
The assets test is used to determine whether a person qualifies for a full or part Age Pension. The government has announced that asset thresholds will increase in March 2025, allowing more people to qualify for pension payments.
New Asset Limits for Age Pension (from March 2025):
- Single Homeowners: Can have assets up to $314,000 and still qualify for the full pension. A part pension applies for assets up to $697,000.
- Single Non-Homeowners: Full pension eligibility increases to $566,000, with a part pension available up to $949,000.
- Couple Homeowners (combined): Can own up to $470,000 in assets for a full pension and up to $1,047,500 for a part pension.
- Couple Non-Homeowners (combined): The asset threshold increases to $722,000 for the full pension and up to $1,299,500 for a part pension.
What This Means for Pensioners
The Age Pension increase will provide pensioners with a small but welcome financial boost to help cover living expenses. The adjusted asset limits mean that some retirees who were previously ineligible for a full or part pension may now qualify for payments.
For example:
- A single homeowner who previously exceeded the asset threshold might now receive a part pension due to the higher limit.
- Couples who were on the border of pension eligibility might see higher payments.
Who Will Benefit from These Changes?
The Age Pension increase will benefit approximately 2.64 million pensioners across Australia. The revised asset thresholds could also result in thousands of additional seniors qualifying for partial pension payments.
Why Is the Age Pension Changing?
Age Pension payments are adjusted twice a year to ensure they keep up with inflation and wage growth. The Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI) are used to determine how much payments should rise.
Concerns About the Adjustments
While the March 2025 pension increase is a step in the right direction, some advocacy groups argue that the adjustments may not be enough to match rising living costs. With inflation remaining high, some retirees may still struggle to afford rent, utilities, and healthcare despite the increased payments.
Read about pension advocacy efforts
How to Check Your Eligibility
If you’re currently receiving the Age Pension or believe you may qualify under the new asset limits, you should:
- Review your financial situation – Check your assets and income to determine if you meet the new thresholds.
- Log in to myGov – Pensioners can access their updated payment information through myGov.
- Contact Services Australia – If you have questions about how the changes affect you, you can speak with a Centrelink representative.
Access your pension details via myGov
Final Thoughts
The March 2025 Age Pension increase provides modest financial relief for Australian retirees, with higher payments and adjusted asset limits ensuring that more seniors receive the support they need. While the changes are helpful, some pensioners may continue to face financial challenges amid rising housing and healthcare costs.
To maximize your benefits, check your pension entitlements and stay up to date with official government announcements.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for SKC News, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin