As of May 2025, the Australian Government has no plans to end the Age Pension. Despite circulating rumors and economic speculation, the pension continues to be a vital support system for millions of seniors.
With the rising cost of living, the Age Pension remains a reliable financial lifeline for those who meet the eligibility criteria.
Let’s break down all the essential updates, from payment rates to qualifying rules, and clarify what the future holds.
What Is the Age Pension and Why It Matters
The Age Pension is a government-funded payment provided to older Australians who meet age, residency, and income/asset test requirements. It is administered by Centrelink under Services Australia.
This fortnightly payment helps eligible seniors maintain financial independence during retirement, especially those with limited or no superannuation or savings.
Eligibility Criteria for Age Pension in 2025
From 1 July 2025, the eligibility age increases to 67 for everyone. This age hike is the final step in a gradual change that began in 2017.
Key Eligibility Conditions:
- Age Requirement: Must be at least 67 years old.
- Residency: Must have lived in Australia for at least 10 years, with 5 years continuous residency.
- Income & Asset Test: Your financial situation is assessed to determine the payment rate.
Updated Age Pension Rates – May 2025
To tackle inflation and rising household costs, the government increased pension rates in May 2025. These rates are reviewed in March and September each year.
Pension Payment Changes Table (May 2025):
| Family Situation | Previous Rate | New Rate | 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 |
2025 Income & Asset Thresholds for Pension Eligibility
Whether you’re eligible for a full or part pension depends on your assets and income, excluding the family home.
2025 Asset Limits Table:
| Situation | Homeowner | Full Pension | No Pension If Over |
|---|---|---|---|
| Single | Yes | $314,000 | $695,500 |
| Single | No | $566,000 | $947,500 |
| Couple (combined) | Yes | $470,000 | $1,045,500 |
| Couple (combined) | No | $722,000 | $1,297,500 |
| One Partner Eligible | Yes | $470,000 | $1,045,500 |
| One Partner Eligible | No | $722,000 | $1,297,500 |
| Illness Separated Couple | Yes | $470,000 | $1,233,000 |
| Illness Separated Couple | No | $722,000 | $1,485,000 |
Other Support Available for Seniors in 2025
Aside from the Age Pension, older Australians may also qualify for additional financial support:
- Rent Assistance – For pensioners paying rent.
- Energy Supplement – To offset rising electricity and gas costs.
- Disability Support Pension – For those unable to work due to long-term illness.
- Commonwealth Seniors Health Card – For access to medical discounts.
All of these benefits may require you to meet income and asset thresholds similar to the Age Pension.
Is There a Mandatory Retirement Age in Australia?
No. Australia does not have a mandatory retirement age. People can continue to work as long as they wish. However, eligibility for Age Pension now starts strictly at 67 years old.
Some Australians retire earlier due to health, personal, or employment reasons, while others keep working past 67 for financial or lifestyle reasons.
To clarify: The Age Pension is not ending in 2025. Instead, it continues to serve as a backbone for retirees’ income security, especially as Australia adapts to demographic and economic changes.
While the eligibility age has now reached 67, support continues to grow through updated pension rates and broader financial assistance options.
Older Australians can rest assured that the Age Pension remains a stable and ongoing commitment by the government to ensure dignity and financial security in retirement.
FAQs
Is the Age Pension ending in 2025?
No, there are no plans to discontinue the Age Pension in 2025.
What is the new pension age in 2025?
From July 2025, the Age Pension eligibility age becomes 67.
Can I still work and receive the Age Pension?
Yes, but your income may affect how much pension you receive under the income test.