Age Pension: Australia’s Primary Income Support for Seniors

Comprehensive overview of eligibility and benefits for Australians aged 67 and over

For many Australians, the Age Pension is more than just a government payment—it’s a crucial pillar of retirement. As living costs rise and superannuation balances vary widely, the pension serves as a safety net for millions of older citizens. But eligibility isn’t always straightforward, and understanding how payments are calculated can be key to maximising entitlements.

Who Can Access the Age Pension?

To receive the Age Pension in 2025, you must meet three main criteria:

Age: You must be at least 67 years old.
Residency: You must be an Australian resident and have lived in Australia for at least 10 years, with at least five of those years being continuous.
Means Test: You must pass both an income and assets test.

📌 Note: If you're a part of a couple, both your combined income and assets are assessed when determining your eligibility and payment rate.

How Much Can You Get?

As of March 2025, the maximum basic Age Pension rate per fortnight is:

Single: $1,116.30
Couple (each): $841.40

These rates include the Pension Supplement and Energy Supplement. Additional allowances may apply depending on your personal circumstances (e.g., rent assistance).

💡 Tip: Pension amounts are indexed twice a year (March and September) in line with inflation and wage growth.

Income and Assets Test Explained

The income test considers money earned from work, investments, superannuation, and financial assets. You're allowed to earn up to a threshold amount before your pension starts reducing.

The assets test considers what you own—excluding your primary home, but including savings, vehicles, property (other than your residence), and valuables. Pension payments taper off as asset values rise beyond the limit.

"Many retirees are surprised that even modest savings can reduce their payments. Planning ahead is essential."

What About Superannuation?

Super is considered when applying for the Age Pension—especially if you're drawing income from it. Once you reach pension age, your superannuation is counted as part of the income and assets test, even if you're not yet accessing it.

This has led some older Australians to delay accessing their super or carefully structure withdrawals to optimise Age Pension eligibility.

Other Supplements & Perks

Pensioners may also qualify for additional benefits, including:

Rent Assistance
Commonwealth Seniors Health Card
Pharmaceutical Benefits Scheme (PBS) discounts
Utility concessions at the state/territory level
Free or discounted public transport in many regions

🎟️ Fun Fact: Seniors in New South Wales holding a Pensioner Concession Card can travel anywhere on public transport for just $2.50 a day.

Applying for the Age Pension

Applications are managed through Services Australia (Centrelink). It’s advised to begin the process up to 13 weeks before turning 67. Applications can be completed online, by phone, or in person.

Required documents typically include proof of age, residency, income, and assets. Processing times vary but usually range from 4 to 8 weeks.

Can You Work and Still Receive a Pension?

Yes—but there are limits. The Work Bonus scheme allows seniors to earn up to $300 per fortnight from employment before it affects their pension.

This initiative encourages older Australians to stay active in the workforce, even in part-time or casual roles, without immediately losing benefits.

International Pension Agreements

If you've lived and worked in another country with which Australia has a social security agreement (e.g., Italy, New Zealand, UK), you may be able to combine working years to meet eligibility or receive partial payments.

🌍 Did You Know? Australia currently has more than 30 international social security agreements in place to assist citizens with cross-border pension access.

Challenges Ahead

As Australia’s population ages, questions are being raised about the sustainability of the pension system. Rising life expectancy, housing insecurity, and health costs are all factors shaping the future of retirement income policy.

Some economists advocate for gradually raising the pension age again. Others suggest boosting superannuation preservation or introducing a universal basic pension. For now, the Age Pension remains the most relied-upon income support for those 67 and over.

Stay Informed, Stay Ahead

Get breaking news, expert analysis, and in-depth coverage on technology, transport, economy, and the issues that shape our future. Our commitment to integrity and accuracy ensures you receive reliable information to make informed decisions.

Subscribe to Newsletter

The Age Pension is more than a payment—it’s a commitment to dignity in later life. Understanding how to qualify and what you’re entitled to can make all the difference as you navigate retirement in today’s Australia.