In 2025, Australia will complete its phased increase of the Age Pension age to 67 years. This milestone, introduced progressively since 2017, affects thousands of Australians preparing for retirement. Understanding your eligibility, payment entitlements, and the latest Centrelink rules is vital to securing financial stability in your senior years.
Age Pension Eligibility in 2025
From 1 October 2025, all Australians must be at least 67 years old to qualify for the Age Pension. This applies to people born between 1 July 1958 and 31 December 1958. Alongside the age requirement, applicants must meet strict residency and financial conditions.
To qualify, you must have lived in Australia as a citizen or permanent resident for at least 10 years, with at least five of those years being continuous. Short interruptions due to travel usually don’t affect your eligibility, but extended time overseas could. If you’ve worked or lived abroad, Centrelink may also assess any overseas pension entitlements before approving your payment.
Income and Asset Tests
Centrelink determines your Age Pension amount using two financial assessments: the income test and the assets test. The lower result from these tests sets your final payment. Income includes wages, superannuation returns, overseas pensions, and any other regular earnings. Assets include property (except your main home), vehicles, shares, and savings.
If your earnings exceed the set threshold, your pension payment will reduce by a specified taper rate. For many seniors, pre-retirement planning—like managing superannuation withdrawals or selling investments strategically—can help stay under these limits. Those with substantial savings or shares may find they receive only a part pension or none at all.
2025 Pension Payment Rates
The Age Pension rates are indexed to inflation and cost-of-living adjustments, ensuring payments maintain real value over time. As of early 2025, the following fortnightly rates apply:
- Single pensioners: Around $1,116 per fortnight
- Couples (combined): Up to $1,682 per fortnight
These figures include the basic payment and do not take into account extra top-ups or supplements. Pension payments are generally reviewed in March and September each year, adjusting with wage and price index changes.
Supplements and Additional Benefits
Seniors receiving the Age Pension may be eligible for extra benefits that boost their overall income. These include:
- Pension Supplement: Helps cover ongoing living expenses like utilities and phone bills.
- Energy Supplement: Supports pensioners with rising electricity and gas costs.
- Rent Assistance: Offered to renters paying above a minimum threshold.
- Pensioner Concession Card: Grants discounts on medical prescriptions, public transport, and essential services across states and territories.
These combined supports reduce the financial strain on older Australians, ensuring essential costs remain manageable even on a fixed income.
How to Apply for the Age Pension in 2025
The cleanest and most efficient way to apply for the Age Pension is online via your myGov account linked to Centrelink. Applications should ideally begin about 13 weeks before your 67th birthday. This ensures that payments commence promptly once you reach eligibility age.
Documents you will need include:
- Proof of age and identity (passport, birth certificate, or driver’s licence)
- Residency evidence
- Income and asset statements (including superannuation)
- Details of overseas pensions or properties, if applicable
- Bank account information for deposits
Once your application is submitted, Centrelink reviews your claim and may request extra details. After approval, payments begin automatically, typically aligning with the next fortnightly payment cycle.
Work Bonus Scheme Enhancements
From October 2025, Centrelink continues to strengthen the Work Bonus scheme, allowing pensioners to keep earning extra income from part-time work without reducing their pension amount. This encourages older Australians to stay active in the workforce while supplementing their retirement income. The flexibility supports semi-retired individuals balancing income needs with lifestyle choices.
Key Updates from October 2025
Several reforms accompany the final rise in pension age:
- Simplified asset reporting: Digital updates through myGov streamline how retirees declare financial changes.
- Faster digital claims: Automation has reduced processing delays for most pension applications.
- Enhanced data matching: Centrelink systems now link with super funds and taxation records to improve accuracy.
These modernised rules reflect Australia’s broader shift toward integrated online welfare services, making the pension system more efficient and transparent.
Preparing for Retirement at 67
Turning 67 in 2025 means you are part of the first group fully impacted by the age increase reforms. Planning early is key. Review your finances, check Centrelink’s calculators, and verify your superannuation balance to ensure a smooth transition. Australia’s Age Pension remains the cornerstone of public retirement support, complemented by these reforms designed to make retirement manageable and digital-friendly.