Good news has arrived for millions of older Australians as the federal government officially confirms a pension increase in 2025, aimed at easing financial pressure for retirees and vulnerable citizens. The Australia Age Pension will rise from 20th March 2025, with a follow-up adjustment expected in September 2025, in line with the usual indexation cycles based on inflation and wage growth.
This confirmed increase comes at a time when living costs remain elevated due to higher utility bills, rising food prices, and escalating healthcare expenses. The government’s move to increase the Age Pension and related payments is a critical step toward improving the financial well-being of Australia’s ageing population.
Why the Pension Is Increasing in 2025
The Age Pension is adjusted twice a year to ensure it keeps pace with cost-of-living changes. The adjustment is based on the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE), whichever provides the higher outcome. With inflation still impacting household budgets across Australia, the March 2025 review triggered a meaningful increase across all major pension categories.
How Much More Will You Get in 2025?
The 2025 pension increase varies depending on whether the recipient is single or part of a couple, and whether they are receiving a full or part pension. In March 2025, single pensioners will receive an increase of $37.10 per fortnight, while couples combined will get an increase of $56.00 per fortnight. This increase includes the base rate pension, along with energy supplements and other allowances.
Here is a breakdown of the new Age Pension payment rates from March 2025:
| Pension Type | Previous Rate (Fortnightly) | New Rate from March 2025 | Increase |
|---|---|---|---|
| Single (Full Pension) | $1,096.70 | $1,133.80 | $37.10 |
| Couple (Each) | $826.70 | $854.70 | $28.00 |
| Couple (Combined) | $1,653.40 | $1,709.40 | $56.00 |
| Energy Supplement (Single) | $14.10 | Included | — |
| Pension Supplement (Single) | $75.60 | Included | — |
What Other Payments Are Increasing?
Alongside the Age Pension, the Disability Support Pension, Carer Payment, and certain Veteran Affairs pensions are also rising in 2025. The increase reflects the government’s broader commitment to maintaining the real value of income support payments for those who rely on them most.
When Will the Increased Payments Begin?
The new payment rates will take effect from 20th March 2025, with eligible pensioners seeing the updated amount in their first Centrelink payment after this date. A second round of increases is also expected in September 2025, as part of the standard biannual indexation cycle.
Eligible recipients do not need to take any action, as the increase will be applied automatically by Services Australia. Pensioners are encouraged to log in to their MyGov accounts to confirm their updated entitlements and ensure that their banking and contact details are accurate.
How the Increase Helps Older Australians
This pension increase offers timely relief, particularly for older Australians on fixed incomes who are struggling with rising rent, food, and medical costs. While advocates argue that even more needs to be done to address pensioner poverty, this rise reflects a step in the right direction toward ensuring seniors can maintain a basic standard of living.
The government continues to face pressure from welfare groups and economic experts to introduce additional rent assistance and consider future increases beyond standard indexation, especially as inflation and housing challenges persist.