The Australian government has confirmed Age Pension increases from September 2025, reflecting the bi-annual adjustment linked to wages and inflation. With the rising cost of living, housing pressures, and healthcare demands, these updates are designed to ensure retirees maintain a basic standard of living.
Alongside the payout increase, there are also superannuation policy adjustments that will influence how retirees plan their finances. This article explains the new pension rates, superannuation updates, and what they mean for older Australians.
Why the Pension Is Increasing
The Age Pension is reviewed every March and September to keep payments aligned with:
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Consumer Price Index (CPI) changes.
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Male Total Average Weekly Earnings (MTAWE).
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Broader living standards benchmarks.
As inflation continues to impact food, rent, power bills, and medical costs, the September 2025 increase is especially important for seniors living on fixed incomes.
Updated Pension Rates – September 2025
From 20 September 2025, the new Age Pension rates will apply.
Single Pensioners
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Previous rate: AUD $1,096.70 per fortnight
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New rate: AUD $1,128.40 per fortnight
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Increase: AUD $31.70 per fortnight
Couples (combined, both eligible)
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Previous rate: AUD $1,653.40 per fortnight
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New rate: AUD $1,701.00 per fortnight
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Increase: AUD $47.60 per fortnight
Couples (only one partner eligible)
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Previous rate: AUD $1,080.00 per fortnight
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New rate: AUD $1,110.50 per fortnight
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Increase: AUD $30.50 per fortnight
These amounts include the Pension Supplement and the Energy Supplement, ensuring retirees have additional support.
Eligibility Criteria in 2025
Eligibility for the Age Pension remains based on:
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Age: Must be at least 67 years old by September 2025 (retirement age adjustment now fully in place).
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Residency: Must be an Australian citizen or permanent resident with at least 10 years of residency (with some exceptions).
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Income test: Income must not exceed the set threshold.
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Assets test: Assets, excluding the primary home, must fall within limits set by Centrelink.
Those exceeding income or asset thresholds may receive a reduced pension or none at all.
Superannuation Changes from September 2025
Superannuation continues to play a major role in retirement planning, and 2025 brings key changes:
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Superannuation Guarantee (SG) Rate: Now at 12%, increasing retirement savings for workers.
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Work Bonus Extension: Pensioners who continue working can earn up to AUD $12,000 per year without affecting their pension.
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Means Testing Alignment: Super balances are assessed more strictly for younger retirees transitioning to the Age Pension.
These changes encourage Australians to rely partly on superannuation, reducing long-term reliance on the public pension system.
Impact on Retirees
The September 2025 changes mean:
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Retirees on the full pension will see more money in their bank accounts each fortnight.
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Pensioners with modest savings in superannuation will have more flexibility to combine income.
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Older Australians who choose to keep working will benefit from the expanded Work Bonus.
However, retirees with higher assets may find themselves receiving reduced pensions under stricter means testing.
Challenges Ahead
While the increases are welcome, challenges remain:
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Inflation continues to erode the real value of pensions.
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Renters in major cities still struggle despite higher payments.
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Many pensioners call for a larger permanent increase to match actual living costs.
The government maintains that the combination of Age Pension, superannuation, and supplements offers balanced support.
How Pensioners Can Prepare
To make the most of the September 2025 updates, retirees should:
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Review Centrelink income and asset declarations to ensure correct payments.
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Check eligibility for Rent Assistance and other supplements.
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Monitor superannuation balances and plan withdrawals wisely.
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Consider financial advice to maximize combined pension + superannuation benefits.
Conclusion
The Age Pension increase in September 2025 delivers meaningful relief for older Australians, with singles gaining an extra $31.70 and couples an extra $47.60 per fortnight. Combined with superannuation policy changes, these updates aim to create a more sustainable retirement system while easing financial pressures.
For pensioners, understanding the new rates, checking eligibility, and planning around superannuation will be key to achieving financial stability in retirement.
FAQs
When will the new Age Pension rates apply?
From 20 September 2025 onwards.
How much extra will single pensioners get?
Single pensioners will receive an extra AUD $31.70 per fortnight.
What about couples?
Couples (both eligible) will get an extra AUD $47.60 combined per fortnight.
What is the new Superannuation Guarantee rate in 2025?
It has increased to 12%, boosting retirement savings.
Do the new rules affect pensioners who still work?
Yes, the Work Bonus now allows them to earn up to AUD $12,000 yearly without losing pension benefits.
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