The 2025 Budget saw a temporary uplift of the Age Pension, wherein the higher payments entered into force by May.
The updated figures matter whether you’re already a recipient of the pension or are a retiree. In today’s world where prices are seemingly ever-increasing, this should matter much more so to the needy.
Let’s look at the changes and how much more exactly pensioners are getting, along with what it means for Australia on an everyday scale, trying to stay afloat financially.
Increase
Since 2025, Age Pension rates have increased marginally but meaningfully. These adjustments occur twice yearly, so payments keep mere with inflation and an increase in the cost of living.
Here is a glimpse on the recent increments:
| Feature | Details |
|---|---|
| Effective Date | 20 March 2025 |
| Single Pensioners | $1,149.00 per fortnight |
| Couples (each) | $866.10 per person |
| Couples (combined) | $1,732.20 per fortnight |
| Increase Amount | +$4.60 (singles), +$7.00 (couples total) |
| Includes | Base Pension + Supplements |
| Next Indexation | September 2025 |
| Calculation Method | Higher of CPI or PBLCI |
These payments now include the base-type pension, the pension supplement that gets added to it, and the energy supplement.
Breakdown
Let’s analyze what actually changed with this recent rise in pensions:
| Category | Previous (Mar 2024) | New (Mar 2025) | Increase |
|---|---|---|---|
| Single Pensioner | $1,144.40 | $1,149.00 | $4.60 |
| Couple (each) | $862.60 | $866.10 | $3.50 |
| Couple (combined) | $1,725.20 | $1,732.20 | $7.00 |
Although that might be seen as a small sum, any reduction in the cost of living would indeed be helpful when trying to survive on a fixed income.
History
Here’s how the Age Pension has changed over the last five years:
| Date | Single Pension | Couple (Combined) |
|---|---|---|
| March 2021 | $952.70 | $1,436.20 |
| March 2022 | $987.60 | $1,488.80 |
| March 2023 | $1,064.00 | $1,604.00 |
| March 2024 | $1,120.60 | $1,696.20 |
| March 2025 | $1,149.00 | $1,732.20 |
The growth reflects Australia’s efforts to adjust pensions in line with inflation and other economic shifts.
Example
Meet Bill and Joan, a retired Queensland couple. Before this month’s increase, their payment was $1,725.20 fortnightly. Now it’s $1,732.20. It may not sound like much, but it helps pay bills-increasing by 7%-and the cost of groceries and petrol.
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Advice
Financial planner Sarah Elston from Aware Super states, “These pension increases are crucial for older Australians. But retirees should regularly check they’re getting every benefit they’re entitled to.
These include:
- Pensioner Concession Card
- Rent Assistance
- Mobility Allowance
- Carer Supplement
- These can make a marked difference to your financial wellbeing, if eligible.
Mistakes
Many pensioners simply leave money on the table through such mistakes:
- Not reporting changes in income or assets
- Missed applications for supplements
- Wrong residency information (especially when going overseas).
A quick trip to Services Australia will surely save you money.
Method
The pension is increased twice yearly, according to either the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI) whichever is higher. In terms of wages, increases could also be related to Male Total Average Weekly Earnings.
According to this, the revenue system is meant to tie pensions not only with prices but also with general earnings across the country.
Mistakes
Many pensioners simply leave money on the table through such mistakes:
- Not reporting changes in income or assets
- Missed applications for supplements
- Wrong residency information (especially when going overseas).
A quick trip to Services Australia will surely save you money.
Method
The pension is increased twice yearly, according to either the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI) whichever is higher. In terms of wages, increases could also be related to Male Total Average Weekly Earnings.
According to this, the revenue system is meant to tie pensions not only with prices but also with general earnings across the country.
Comparison
Here’s how the Age Pension stacks up with other forms of government payments:
- Type of Payment Maximum Fortnightly Rate
- Age Pension (Single) $1,149.00
- JobSeeker (60+, Single) $802.50
- Disability Support Pension $1,149.00
- Parenting Payment (Single) $970.20
So, if you are on Age Pension, you receive one of the maximum government payments available.
Outlook
The anticipation for another bump in pensions comes in September 2025, particularly if inflation persists as high as 3%. There could be discussion about raising the energy supplement or possibly looking at how deeming rates affect income-tested payments.
With the cost of living hitting faster, the adjustment in September could be a defining moment again for the retirees all around the country.
FAQS:
When does the increase of pension for 2025 take effect?
The increment took effect on 20 March 2025.
How much is being received by a pensioner with a single status?
$1,149.00 per fortnight, including supplements.
How much does the rate for coupling amount to?
$1,732.20 joint per fortnight.
At what frequency are pensions adjusted?
Twice-yearly; that is, March and September.
By what index is effect given to the rises in pensions?
The upper one between consumer price index and pensioners’ benefit and living cost index.
