As of April 2025, there is no plan to discontinue the Age Pension in Australia. While speculation has circulated, the Australian Government has reaffirmed its ongoing support for the pension system, which remains a cornerstone of the country’s retirement framework.
The Age Pension continues to be a vital financial support for millions of retirees, especially amid persistent cost-of-living pressures.
Administered by Centrelink through Services Australia, the Age Pension is a fortnightly payment designed to help older Australians meet essential living expenses. Funded by taxpayer dollars, it plays a crucial role in ensuring economic security for eligible seniors.
Eligibility for Age Pension in 2025
Starting from 1 July 2025, the qualifying age for the Age Pension officially shifts to 67 years. This transition, planned years ago, is now being implemented across the board.
Eligibility Criteria:
- Age Requirement: Must be 67 years or older from July 2025.
- Residency Rule: Must have lived in Australia for 10 years, with at least 5 years continuously.
- Income & Assets Test: Pension amount varies depending on earnings and the total value of owned assets.
Age Pension Payment Increase in 2025
Pension rates are adjusted biannually—in March and September—based on economic indicators like the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI).
In April 2025, payments saw a significant increase in response to a 4% annual CPI rise, aimed at cushioning retirees from ongoing inflation.
Updated Age Pension Payment Rates (April 2025)
| Family Situation | Previous Amount | New Amount | Total Increase |
|---|---|---|---|
| Single | $2,444.60 | $2,500.80 | $56.20 |
| Couple (combined) | $3,737.60 | $3,822.40 | $84.80 |
| Illness Separated Couple | $4,837.20 | $4,949.60 | $112.40 |
These adjustments aim to provide relief for seniors relying solely on government assistance.
Asset and Income Thresholds for 2025
The Age Pension is means-tested. The amount received—or whether one qualifies at all—depends on both income and assets.
2025 Asset Limits and Pension Qualification
| Situation | Property Owned | Full Pension | Part Pension Range | No Pension if Assets Exceed |
|---|---|---|---|---|
| Single | Homeowner | $314,000 | $314,000 – $695,000 | $695,500 |
| Single | Non-Homeowner | $566,000 | $566,000 – $947,500 | $947,500 |
| Couple (combined) | Homeowner | $470,000 | $470,000 – $1,045,500 | $1,045,500 |
| Couple (combined) | Non-Homeowner | $722,000 | $722,000 – $1,297,500 | $1,297,500 |
| One Partner Eligible | Homeowner | $470,000 | $470,000 – $1,045,500 | $1,045,500 |
| One Partner Eligible | Non-Homeowner | $722,000 | $722,000 – $1,297,500 | $1,297,500 |
| Illness Separated Couple | Homeowner | $470,000 | $470,000 – $1,233,000 | $1,233,000 |
| Illness Separated Couple | Non-Homeowner | $722,000 | $722,000 – $1,485,000 | $1,485,000 |
Seniors whose assets fall within the part pension range may receive reduced payments, while those above the maximum threshold receive no pension.
Additional Financial Support for Older Australians
In addition to the Age Pension, other support mechanisms remain available for eligible seniors in 2025:
- Disability Support Pension: For those with specific health conditions.
- Seniors Health Card: Offers discounts on medical expenses.
- Rent Assistance: Provided to seniors not owning a home.
- Energy Supplement: Helps offset electricity and gas bills.
These government initiatives help maintain a decent quality of life and reduce financial burdens for older Australians.
What About Retirement Age in Australia?
There is no legally mandated retirement age in Australia. Individuals may retire whenever they choose; however, access to benefits like the Age Pension begins only after meeting age and residency requirements.
While the average retirement age remains close to 65, many retire earlier due to health, redundancy, or caregiving needs.
There is no plan to phase out or stop the Age Pension in 2025. Despite changes in eligibility age and payment thresholds, the Australian Government remains firmly committed to supporting its senior population.
Regular adjustments in payment rates ensure the Age Pension continues to serve as a reliable and structured form of retirement income for Australians across the country.
FAQs
Will the Age Pension stop completely in 2025?
No. There is no indication that the Age Pension will be discontinued. It remains a key part of Australia’s social safety net.
Can I receive a part pension if my assets are high?
Yes, individuals who exceed the full pension asset threshold but remain under the maximum limit may qualify for a part pension.
Is the Age Pension taxed in Australia?
No. The Age Pension is generally tax-free, making it a crucial non-taxable income source for retirees.