Starting April 2025, thousands of Australian seniors will benefit from a significant Age Pension increase, with payments rising to $891 per fortnight for eligible recipients. This update aims to assist retirees in managing essential living costs amid ongoing economic pressures.
Whether you are already receiving pension payments or planning to apply, understanding the new payment structure and eligibility rules is vital.
New Age Pension Rates Effective April 2025
The April adjustment brings increases across single and partnered pensioners, with an emphasis on helping households maintain purchasing power.
| Category | Previous Rate | Increase | New Rate (Fortnightly) | Annual Equivalent |
|---|---|---|---|---|
| Single Pensioner | $886.60 | $4.40 | $891.00 | $23,166.00 |
| Partnered (each person) | $668.00 | $3.10 | $671.10 | $17,448.60 |
| Partnered (combined) | $1,336.00 | $6.20 | $1,342.20 | $34,897.20 |
The changes reflect adjustments made in line with inflation and cost-of-living trends.
Who Is Eligible for the $891 Age Pension?
To qualify for the Age Pension in April 2025 and beyond, applicants must meet these key criteria:
- Age: You must be 67 years or older.
- Residency: Must be a permanent resident of Australia and have lived in the country for at least 10 years, including 5 continuous years.
- Income Test: Pension eligibility is reduced based on your income.
- Single: Full pension if income is under $212/fortnight, phased out at approx. $2,500/fortnight.
- Couples (combined): Full pension if income is under $372/fortnight, phased out at approx. $3,800/fortnight.
- Assets Test:
- Single homeowner: Full pension if assets are below $314,000.
- Couple homeowners: Full pension if combined assets are below $470,000.
- Higher thresholds apply for non-homeowners.
Whichever test (income or assets) results in a lower pension will be used to calculate your payment.
How to Apply for the Age Pension
If you are approaching pension age and haven’t yet applied, here are the basic steps:
- Create a myGov account and link it to Centrelink.
- Complete the Age Pension application online.
- Upload documents such as identity proof, income, and assets.
- Submit the application and track the progress online.
- Once approved, payments will begin based on your eligibility date, and new rates will apply from April 1, 2025.
Extra Support for Seniors in 2025
Along with the base pension increase, eligible seniors may receive:
- Work Bonus: Allows part-time work income of up to $300/fortnight without reducing your pension.
- Rent Assistance: Additional payments for those renting their homes.
- One-Time Payments: Additional support bonuses may be issued in 2025 depending on economic conditions and government announcements.
These benefits are designed to provide more flexibility and financial security to older Australians.
The $891 Age Pension increase in April 2025 is a timely adjustment aimed at supporting older Australians as living costs continue to rise. With automatic updates for current recipients and clear eligibility guidelines for new applicants, this change ensures that retirees maintain stability in their financial planning.
Be sure to check your eligibility, keep your records up to date, and take advantage of any additional benefits you’re entitled to.
FAQs
Will I receive the $891 automatically if I already get the Age Pension?
Yes. If you’re already approved for the Age Pension, your payment will be automatically adjusted to reflect the new amount.
Can I still work and receive the full pension?
Yes, under the Work Bonus, you can earn up to $300 per fortnight without affecting your Age Pension payments.
What if I turn 67 after April 2025?
You can apply once you meet the age requirement. If approved, you will begin receiving the new $891 rate from your start date.