Planning your retirement or already eligible for the Age Pension in 2025? The Age Pension remains one of Australia’s most important social supports, offering financial security to older Australians as they move into retirement.
In 2025, as living costs continue to rise and many people remain active beyond traditional retirement age, understanding how the Age Pension works has never been more important. Whether you’re planning ahead or nearing eligibility, this guide breaks down everything you need to know from who can receive it, to how much you could get, and how to apply through Services Australia.
Quick Summary (Updated October 2025)
Table of Contents
Who’s Eligible?
To qualify for the Age Pension, you need to meet several key requirements related to age, residency, and financial circumstances.
| Criterion | Details |
|---|---|
| Age Requirement | You must be at least 67 years old to receive the Age Pension. |
| Residency & Citizenship Rules | You must have lived in Australia for at least 10 years, with a minimum of 5 years of continuous residence. Some exceptions apply under international social security agreements. |
| Income & Assets Tests | Your income and assets are both assessed to determine eligibility and payment amount. The test that results in the lower rate is applied. |
| Other Conditions or Exemptions | Certain applicants, such as those who are legally blind, may be exempt from the means tests or specific eligibility requirements. |
If you meet the age and residency rules but fail the means tests, you might not receive any Age Pension. There’s also a Commonwealth Seniors Health Card for some people who don’t qualify but meet other criteria
How Much Can You Get? (Rates from 20 September 2025)
| Pension Type | Amount (per fortnight) | Includes |
|---|---|---|
| Single Person | $1,178.70 |
|
| Each Member of a Couple | $888.50 |
|
These amounts apply from 20 September 2025 and are expected to remain in place until the next indexation date on 20 March 2026.
How Income and Assets Affect Age Pension
Your pension may be reduced (or “tapered”) under one (or both) of the following
How the Age Pension Means Tests Work (Updated)
This summary shows the current Income Test, Assets Test, Deeming rules and related points — presented in easy-to-read tables so you can drop it straight into an article.
1. Income Test (fortnightly rules)
| Situation | Free area (no reduction) | Taper (reduction) once above free area | Fortnightly cut-off (pension becomes zero) |
|---|---|---|---|
| Single (standard rules) | $218 per fortnight | 50 cents reduction for each $1 above $218 | $2,575.40 per fortnight |
| Couple (living together, standard rules) | $380 combined per fortnight | 25 cents reduction per $1 (each partner’s pension reduced proportionally) | $3,934.00 combined per fortnight |
| Single (transitional rules) | $218 per fortnight | 40 cents reduction for each $1 above $218 | $2,617.25 per fortnight (transitional cut-off) |
| Couple (transitional rules) | $380 combined per fortnight | 20 cents reduction per $1 (each partner) | $4,251.50 combined per fortnight (transitional) |
- The Income Test applies to income from all sources (employment, deemed income from financial assets, superannuation income streams etc.).
- Work Bonus can allow part of employment income to be ignored before it reduces your pension (check eligibility for the Work Bonus / income bank).
- If both Income and Assets tests apply, you get the lower pension amount determined by the two tests.
2. Assets Test (how assets affect the pension)
| Situation | Full pension asset limit (Homeowner) | Full pension asset limit (Non-homeowner) |
|---|---|---|
| Single | $321,500 | $579,500 |
| Couple (combined) | $481,500 | $739,500 |
| Situation | Part-pension cut-off (Homeowner) | Part-pension cut-off (Non-homeowner) |
|---|---|---|
| Single | $714,500 | $972,500 |
| Couple (combined) | $1,074,000 | $1,332,000 |
| Couple separated due to illness (combined) | $1,267,500 | $1,525,500 |
1. Calculate Assets excess = Total assessable assets − applicable free area.
2. Each $1,000 (or part thereof) of excess reduces fortnightly pension by $3 per $1,000 (i.e. $3 for every $1,000).
3. Round down the result to the nearest whole dollar. If the reduction reaches the full pension amount, the assets test result is zero.
3. Deeming (how financial assets are treated for the Income Test)
| Situation | Deeming thresholds | Deemed rates |
|---|---|---|
| Single (or each single person) | First $64,200 of financial assets | Deemed at 0.75%; amounts over $64,200 deemed at 2.75%. |
| Member of a couple where at least one gets a pension | First $106,200 of combined financial assets | Deemed at 0.75%; amounts over $106,200 deemed at 2.75%. |
| Couple where neither gets a pension | Each person’s first $53,100 | Each first $53,100 deemed at 0.75%; amounts over at 2.75%. |
- Deeming assumes a set return from financial assets — it is used to calculate income for the Income Test.
- If your actual returns exceed the deemed rates, the excess does not count against your pension (deeming benefits investors who earn more than the deeming rate).
- There are limited deeming exemptions (for failed investments, inaccessible super, etc.) — these are special cases and require assessment.
4. Work Bonus / Income Bank
Work Bonus allows eligible Age Pension recipients to earn extra from employment before their fortnightly income affects the pension. Unused Work Bonus amounts can be kept in an income bank to offset income earned in future fortnights. Check eligibility and how hours/income are counted to see how much can be excluded from the Income Test.
5. Additional important points
- Your principal home is generally exempt from the Assets Test (not normally counted as an assessable asset).
- If you receive rent, dividends, superannuation income streams or annuity payments, these may be treated as income (or deemed income) depending on the type.
- Special rules apply to some lifetime income streams and certain annuities — only part may be counted for assets or income purposes.
- If your circumstances change (sell an asset, move overseas, income changes), you must notify the relevant authority for reassessment.
- Some thresholds and rates are subject to periodic indexation — keep the page up to date yearly if you maintain this article.
Working While Receiving the Age Pension
You can continue working while receiving the Age Pension. However, your earnings and other forms of assessable income (such as superannuation, rental income, or investments) may reduce your payment under the Income Test.
Services Australia applies an income threshold before any reduction occurs. Above that limit, your pension is reduced by a set rate per dollar of additional income.
To support older Australians who wish to stay in the workforce, the government provides a Work Bonus scheme:
- The Work Bonus allows eligible pensioners to earn extra income from work before it affects their Age Pension.
- Currently, the first $300 per fortnight of employment income is excluded from the income test.
- If you don’t use all of your $300 allowance, the unused amount is added to your Work Bonus income bank, which can accumulate up to $11,800.
- This “income bank” can then offset future income you earn — for example, if you take on part-time or casual work later.
Other points to note:
- The Work Bonus only applies to income from work (including self-employment in certain cases), not investment or rental income.
- If you and your partner both receive the Age Pension, each has a separate Work Bonus and income bank.
- You can check how work income affects your payment using the official Age Pension calculators on the Services Australia website.
- You must report all income regularly through myGov or Centrelink to ensure your payments remain correct.
In summary: You can work and keep receiving the Age Pension — the system is designed to encourage continued workforce participation while balancing fair means testing. By using the Work Bonus effectively, many pensioners can earn extra income without reducing their pension entitlements immediately.
How to Apply
You can apply for the Age Pension online, by paper form, or with staff help. The key steps are:
- Check eligibility ahead of time
- You can start your claim up to 13 weeks before you reach Age Pension age.
- If you already receive a payment (e.g. JobSeeker) near your pension age, you may receive an invitation to transfer to the Age Pension.
- Gather documentation in advance: proof of identity, residency history, income & assets, bank details, tax file number, partner’s details (if relevant).
- Apply online via myGov / Centrelink
- Log into your myGov account linked to Centrelink, and choose “Make a claim” → “Age Pension.”
- Answer the eligibility questions, fill out income & assets information, upload supporting documents.
- You can save and return later if you cannot complete in one session.
- Paper form option
- Download or request the Claim for Age Pension and Pension Bonus (SA002) form (plus the Income & Assets form).
- Fill it out, attach the required documents, and submit in person at a Services Australia centre or mail it to their address.
- Staff-assisted / in person
- Visit a Services Australia / Centrelink service centre to apply with staff help.
- You can also call the Older Australians line or arrange an appointment to assist with forms, interpreters, etc.
- Verification & assessment period
- The agency will ask you to supply documents to verify your claims (identity, bank statements, asset valuations, etc.).
- If documents are missing or incomplete, your claim may be delayed or rejected.
- Once everything is assessed, you’ll be notified of the decision and the amount you’ll receive.
Payment Details
Here is how Age Pension payments are structured and what to expect:
- Frequency & method
Payments are made fortnightly, deposited directly into your nominated bank account. - Maximum rates & supplements
The basic pension rate is adjusted twice a year (March and September). On top of the base rate, additional supplements may be included (such as the Energy Supplement or Pension Supplement) depending on your eligibility. - Amounts from 20 September 2025
The updated full pension rates for that period are (including supplements):- Single: $1,178.70 per fortnight
- Couple (each): $888.50 per fortnight
- Couple (combined): $1,777.00 per fortnight
- Rent Assistance and other extras
If you rent, you may qualify for Rent Assistance (if not fully subsidised by other programs).
Some payments may change depending on whether you live inside or outside Australia and whether supplements continue in those cases.
Indexation & Reviews
- The Age Pension rates (base, supplements, thresholds) are indexed twice a year, in March and September, to reflect changes in inflation and wages.
- You do not need to reapply each time — Services Australia automatically adjusts your pension when indexation occurs.
- Services Australia also periodically reviews your eligibility (income, assets, residency changes) and may contact you to update information.
- If your circumstances change (e.g. you sell a property, start/stop work, move overseas), you must notify them so your payments remain correct.
Overseas Conditions
If you’re receiving the Age Pension and travel or move overseas, your payment may be affected:
- If you’re overseas for up to 26 weeks, usually your pension continues in full (assuming you still meet eligibility).
- After 26 weeks abroad, your rate may be adjusted (proportionalised) based on how long you were an Australian resident between age 16 and your pension age (called Australian Working Life Residency, AWLR).
- For example, if you had 10 years of AWLR, you may get 10/35ths of your full rate if full AWLR is 35 years.
- If you had 35 years or more of AWLR, your rate often stays full.
- Some supplements (e.g. Energy Supplement) may cease after extended periods overseas.
- If you live overseas permanently, special “outside Australia rate” rules apply — payments may be monthly (not fortnightly) and reduced.
- If you live in a country that has a Social Security Agreement with Australia, you might retain more favorable access or arrangements for the pension.
Useful Contacts
Here are important contacts and resources:
- Services Australia — Age Pension page
For official rules, claim forms, and online services
(Services Australia website) - Older Australians line
Call Centrelink at 132 300 (for inquiries about pension) - myGov / Centrelink online support
Use the myGov portal to manage your pension, submit claims, check status - International / foreign income queries
If you live overseas or have foreign assets/income, contact the International Services section of Services Australia - Forms
- Claim for Age Pension & Pension Bonus (SA002)
- Income & Assets form (SA369)
- Proof of identity and residency supporting documents
- Service centres / offices
Visit a local Services Australia / Centrelink office to get help applying or resolving issues
Final Summary
The Age Pension is a key support mechanism for retired Australians, but it’s not unconditional — you must satisfy age, residency, income, and assets criteria. How much you receive depends on which means test (income or assets) is more limiting.
To apply, prepare your documents, choose the best application method (online, paper, or in person), and submit your claim before or shortly after you reach pension age. Payments are made fortnightly and reviewed regularly, with automatic indexation twice a year.
If you travel or live abroad, your pension may be affected after 26 weeks, depending on your history of residence in Australia. Social security agreements with other countries may ease these impacts.
Finally, always keep your personal info, income, asset, and address details up to date with Services Australia to avoid overpayments or underpayments.
Age Pension Estimator — Updated 2025
Use this easy tool from Assist Info AU to estimate your fortnightly Australian Age Pension based on your income and assets. This is an educational estimator only. Please always verify results using official Services Australia calculators.
Top 10 FAQs about the Age Pension (Australia, 2025)
1. What is the Age Pension and who provides it?
The Age Pension is a government payment from Services Australia (Centrelink) designed to support older Australians with the cost of living after retirement. It’s means-tested — based on your age, residency, income, and assets — and provides a regular fortnightly payment to eligible people.
2. What is the current Age Pension age in 2025?
As of 2025, the qualifying age for the Age Pension is 67 years.
This applies to both men and women. You can lodge your claim up to 13 weeks before you reach Age Pension age.
3. How much can I receive from the Age Pension?
From 20 September 2025, the maximum fortnightly payments (including supplements) are approximately:
- Single: $1,178.70
- Couple (each): $888.50
- Couple (combined): $1,777.00
Payments are adjusted twice a year (March and September) for inflation and wage growth.
4. What are the current income limits for the Age Pension?
Under the Income Test:
- Singles can earn up to $218 per fortnight before the pension starts reducing.
- Couples (combined) can earn up to $380 per fortnight before reduction.
- The pension then reduces by 50 cents per dollar (single) or 25 cents per dollar each (couple) above those limits.
The payment cuts off entirely once income reaches roughly $2,575.40 (single) or $3,934.00 (couple combined) per fortnight.
5. What are the current asset limits for the Age Pension?
Under the Assets Test (as of September 2025):
- Single homeowner: up to $321,500 for full pension
- Single non-homeowner: up to $579,500 for full pension
- Couple homeowners (combined): up to $481,500
- Couple non-homeowners (combined): up to $739,500
Above these limits, the pension gradually reduces.
6. Can I still work while receiving the Age Pension?
Yes. You can continue working and still receive the pension.
The Work Bonus allows you to earn up to $300 per fortnight from employment without it affecting your payment.
Unused amounts can build up in a Work Bonus income bank (up to $11,800) for future use.
7. How often are Age Pension rates reviewed or updated?
Pension rates are indexed twice a year, in March and September.
The adjustments reflect changes in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE) to help keep pension values aligned with living costs.
8. Can I receive the Age Pension if I live overseas?
Yes — but with conditions.
If you go overseas for up to 26 weeks, your full pension usually continues.
After that, your rate may be proportionalised based on your Australian Working Life Residency (AWLR) — how many years you lived in Australia between age 16 and your pension age.
Some supplements (like the Energy Supplement) may stop after extended stays abroad.
9. How do I apply for the Age Pension?
You can apply:
- Online through your myGov account linked to Centrelink
- By paper form (SA002) submitted at a Services Australia office or by post
- With staff assistance in person or by calling the Older Australians line (132 300)
It’s best to apply up to 13 weeks before reaching Age Pension age to avoid delays.
10. What should I do if my circumstances change?
You must report any change in your income, assets, relationship status, residency, or living situation to Services Australia as soon as possible.
Changes can affect your payment amount. Not reporting may cause over payment debts or suspension of benefits.