Age Pension Updates 2025, What are the changes in Age Pension

As the new year (2025) starts, there’s a wonderful opportunity & sense of optimism in the air. This indicates the time when necessary changes need to be made for the sake of greater good. In this seasoned fresh air, excellent news has been brought for the retired folks.

Age Pension Updates 2025

The age pension is set to go up in the year 2025. The basic Age Pension rate is made to go through review twice a year. Every year on March 20 & September 20, the changes are made to ensure the best & optimum age pension benefits are provided to the retired people. The indexation on which the changes occur that happens twice every year, includes Consumer Price Index, Pensioner Beneficiary Living Cost Index as well as Male Total Average Weekly Earning Index. Every year, in the month of February the indexation occurs, and based on the results the pension benefits are adjusted. 

Why The Age Pension Might Increase?

Unknown to no one, by every passing day, the cost of living is rising dramatically. The rapid surge of cost & the high inflation rate has made the life of people unbearable. For the retired folks of the country, this issue is very evident. The people who have left their work for retirement are the ones that are heavily affected by this. Little pension amount leaves nothing after even in between the daily necessities. Which has indeed made it harder to live a better quality of life. 

However, these are the sole reasons why there’s an absolute need for a rise in pension benefits.  To make it of good use, the age pension will be increased to give the retired people great benefits. And a nice amount of money to spend on their daily necessities.

Income and Asset Test limits 2025

The limits for both parts of the means test (income test and assets test) are often changed on the same dates as indexation (March 20 and/or September 20). Actually , both limits can change again on 1 July. It’s really important to keep your eye on these limits if you are eligible enough.

You may use the free Age Pension Entitlement Calculator at any time to ensure the beneficiary able to apply as soon as possible, thus mitigating the danger of a loss of potential benefits while your application is being processed.

Age Pension Updates 2025

Deeming Rates changes 2025

As an effect of the general economic uncertainty caused by the Covid-19 pandemic, successive Federal Governments have brought up to keep deeming rates frozen. thus giving retirees a degree of security as to their income assessments for the Age Pension or the Commonwealth Seniors Health Card (CSHC). The current rates are following a) Singles up to and above: $60,400, b) Couples up to and above $100,200. These rates are scheduled for reassessment by July 1, 2025, and are very likely to increase for the first time in five years. The Australian Government reviews the deeming rate in July each year.

A bigger deeming rate will mean that you will be deemed to earn higher income than you currently do and if on a full or part-Age Pension, your entitlements may reduce. Again, you can use the Age Pension Entitlements Calculator completely to check any changes to your entitlements should deeming rates be adjusted.

Related Article: $1,725 Australia Age Pension

How do you keep on top of these changes?

The Retirement Essentials team works flawlessly to ensure all information is accurate and up-to-date. The aspects of the Centrelink Age Pension are discussed below.

How the Age Pension is calculated?

Centrelink determines whether someone is eligible or not based on an income test and a assets test. If you fail any exam, you are not entitled. Your fortnightly allowance will be calculated from whichever exam has the lower age allowance rate.

How much you can earn before your pension is affected?

It is important for recipients to know how Australian Government calculates the Age Pension. The Centrelink determines Age Pension by independently assessing both income and asset test. Means tests are in place to ensure that the Age Pension is targeted at those who need it most. Recent estimates show that at least 7 in 10 people over the age of 65 are receiving some level of Age Pension.

The current Age Pension rates

The age pension rates as of September 2024 are as follows.

  • Single: $1,144 per fortnight and $29,754 per year
  • Couples: $1,725 per fortnight and $44,855 per year

When Age Pension rates change each year?

The base rate of the Age Pension is calculated based on three different measures; a) the Consumer Price Index, b) the Cost of Living Index for pensioners and c) the average weekly earnings of men. Typically, this rate is recalculated every March and September. The new rate of the Age Pension is published on or around the 20th of March and September.

When the asset and Age Pension thresholds change each year?

The age pension limit is indexed and adjusted to the age pension rate. However, there is also an additional indexed adjustment in July.

When the Deeming rates change?

The Deeming rates are reviewed and changed by the Minister of Social Services. The current set rates are 0.25% on your financial assets up to $62,600 (single) or $103,800 (couple). And 2.25% on your financial assets above this limit.

If you are an age pensioner beneficiary and are interested in knowing whether the rates could be higher, you should considering a Maximizing your entitlements consultation.

How many time Age Pension asset and income tests

Three times in a year.

Who are eligible for Age Pension Benefits?

Citizens of Australia with age of 67 years or above and pass an income and assets test.

What are the factors for the age pension changes?

The changes are based on three measures, the Consumer Price Index, Pensioner Beneficiary Living Cost Index and the Male Total Average Weekly Earnings.

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