Note: Age Pension rates and thresholds were updated from 20 March 2026. Please refer to our latest blog for the current figures and changes: Age Pension Changes from March 2026: Key Updates Explained
The Government has announced changes to the Age Pension, set to take effect from 20 September 2025. This update includes age pension rate increase, along with key adjustments to deeming rates, income and asset thresholds.
For many Australians, the Age Pension is more than just a government payment, it’s an important part of retirement income. According to the Australian Institute of Health and Welfare, as of 31 March 2023, around 2.8 million Australians aged 65 and over were receiving income support, and 92% of them (2.6 million people) were on the Age Pension. This highlights the central role the age pension plays in supporting the financial wellbeing of older Australians in retirement.
Whether you’re already receiving the Age Pension or approaching eligibility age, these changes could have a real impact on your budget, lifestyle, and peace of mind
In this blog, we’ll uncover.
- The latest Age Pension rate increase and what it means for singles and couples
- How changes to deeming rates might reduce or boost your pension
- Updated income and asset thresholds that could affect your eligibility
- What are the new deeming rates for age pension
- The key steps you should take now to prepare for these changes
What Are the New Age Pension Rates from 20 September 2025?
From 20 September 2025, the maximum full Age Pension will increase by:
- $29.70 per fortnight for singles
- $44.80 combined ($22.40 each) per fortnight for couples
Below is a clear breakdown of the Age Pension increases for singles and couples, comparing current rates to the changes taking effect from 20 September 2025.
For Couples;
What Is the Age Pension When One Partner Is Eligible?
This is a common scenario, especially when partners are of different ages. If you’re part of a couple, whether married, in a de facto relationship, or separated due to illness and only one of you is eligible for the Age Pension, you will still be assessed as a couple.
That means your combined income and assets will be considered when determining your payment, even if only one partner is receiving the pension.
From 20 September 2025, if you’re the only eligible partner in the relationship and qualify for the full Age Pension, you’ll be entitled to $813.90 per fortnight (half of the full couple rate) and you would also be entitled to the maximum pension supplement of $64.00 per fortnight.
This brings your total fortnightly payment to $877.90, assuming you meet the eligibility criteria and are not affected by income or asset test reductions.
Further, the energy supplement may also be included in some cases, but it’s only available if you held a Commonwealth Seniors Health Card (CSHC) before 20 September 2016.
What are The New Income and Asset Thresholds From 20 September 2025?
From 20 September 2025, changes to the income and asset thresholds will come into effect and they could impact your Age Pension eligibility.
If you’ve previously missed out on the Age Pension, these updates might mean you now qualify for a part payment. This is an important opportunity to reassess your financial position. Whether you’re already receiving a part pension, have had your payment reduced due to changes in your circumstances, or have never qualified before, it’s worth checking to see how the new limits apply to you.
Below are summaries of the new thresholds, including a comparison with the current limits and how much they are increasing.
What are The New Deeming Rates for Age Pension?
If you’re wondering what the Deeming Rate is, it’s simple. Instead of looking at how much money you’re actually earning from your savings and investments, Centrelink uses deeming rates to estimate your income. It doesn’t matter how much is your interest in term deposit or your shares are going up and down, the Centrelink assumes your financial assets are earning a set rate of return.
This estimated income is then added to your other income, like wages or rental income, and used in the Age Pension income test to work out how much pension you’re eligible for.
For the past two years, deeming rates have been frozen, even while interest rates and living costs have been going up. That freeze helped many pensioners by keeping their assessed income low, allowing them to receive more from the Age Pension.
But, starting 20 September 2025, the deeming rates will increase to 0.75% for financial assets up to $64,200 for singles and $106,200 for couples combined. For any amount above those limits, the deeming rate will be 2.75%. Currently, these rates are 0.25% and 2.25%, so both will increase by 0.5%.
What Steps Should You Take Now?
If you’re approaching Age Pension age or already receiving it, these changes could make a real difference to your retirement income. Take the time to understand what’s changing and make sure you’re getting what you’re entitled to.
Here’s what you can do:
- Review your financial situation – including your income, assets, and investments.
- Check your eligibility again – the new limits might mean you’re now entitled to a full or part pension.
- Speak to a financial advisor or Centrelink – especially if you’re unsure how eligibility criteria apply to you.
- Update your details with Centrelink – to ensure they have the most accurate and up-to-date information about your finances.
- Plan ahead – even if you’re not yet eligible, understanding the rules now can help you make better decisions for the future.
How Yield Financial Advisors Can Help You?
At Yield, we have a team of retirement specialists who have helped many Australians retire with confidence. We’ve supported countless clients through their Age Pension journey, from understanding eligibility and navigating Centrelink rules to structuring their finances to maximise entitlements. Our deep expertise in retirement planning, combined with a client-first approach, means we tailor advice to suit your individual needs and goals.
If you’re looking for trusted guidance to help you make the most of your retirement, we’re ready to help. Reach out to book your free initial consultation and connect with one of our retirement experts.
