Age Pension Increase 2025: Who Gets the A$1116 Payment and When

Age Pension Increase 2025: Who Gets the A$1116 Payment and When. You are not alone in the event that you have just heard that there is an Australian A$1,116 Age Pension coming in October 2025. News of this supposed payment is being discussed by many Australians who are asking whether the government has declared another one-off bonus. 

The reality is a lot less complicated – there is no new A$1,116 payment. It is actually the usual September 2025 Age Pension increase, which is meant to aid older Australians in maintaining the rising living standards.

“The Age Pension is not a cheque; it is an assurance that every Australian needs to have security, dignity, and stability in their old age after decades of contribution.”

Pension rates will again be raised by the planned indexation of the government since 20 September 2025. This implies that single retirees will get AA$1,178.70 per fortnight, whereas couples will receive AA$888.50 each. Such payments are maintained up to March 2026, which guarantees protection of pensioners against inflation and pay increases.

Overview – Age Pension Increase 2025: A$1116 Payment 

What is the Australian A$1116 Age Pension?

The so-called “Australia A$1116 Age Pension” is not a separate benefit but part of the regular indexation increase that occurs twice a year — in March and September. This system ensures that pensioners’ incomes keep pace with inflation and average wage growth.

The A$1,116 figure seen online likely represents what part-pensioners receive after the income and assets tests are applied. However, the full rates are higher — AA$1,178.70 for singles and AA$888.50 each for couples.

These updates are vital for millions of Australians who depend on the Age Pension to meet daily expenses like groceries, rent, and healthcare.

How Pension Rates Are Calculated

Each increase is determined using three benchmarks:

1. Consumer Price Index (CPI): Measures inflation based on essential goods and services.
2. Pensioner and Beneficiary Living Cost Index (PBLCI): Focuses on the expenses of pensioners to better reflect their actual living costs.
3. Male Total Average Weekly Earnings (MTAWE): Ensures pensions rise in line with national wage growth.

Whichever measure gives the highest increase is used, meaning pensioners always benefit from the most favourable calculation.

Eligibility

To receive the Australian A$1116 Age Pension, you must meet three main conditions:

1. Age Requirement

You must be 67 years or older. Applications can be submitted up to 13 weeks before reaching this age.

2. Residency Rules

You must be an Australian resident for at least 10 years, with 5 years continuous residence.
Australia also has social security agreements with 30+ countries, allowing combined work periods to count toward eligibility.

3. Income and Assets Test

Your payment depends on your income and the value of your assets.

• Single homeowner: Full pension up to AA$321,500 in assets.
• Couple homeowners: Combined asset limit of AA$481,500.
• Non-homeowners: Higher limits apply.

If your assets or income exceed the limit, your payment is gradually reduced, ensuring fairness for all retirees.

Updated Pension Rates

These rates already include the Pension Supplement and Energy Supplement, which help with household and utility expenses.

Payment Dates and Frequency

Payments are made every two weeks directly to your nominated bank account.
If you are already on the Age Pension, you don’t need to reapply — your new rate will automatically apply from 20 September 2025.

Most retirees will see their first increased payment in early October 2025, depending on their payment cycle.

Common Mistakes

Many pensioners unintentionally miss out on benefits due to simple oversights. Avoid these mistakes:

• Not updating financial details: Report changes in income, savings, or property.
• Delaying your application: Apply 13 weeks before turning 67.
• Assuming you’re ineligible: Many still qualify for a part pension.
• Ignoring extra supplements: You may also be entitled to Rent Assistance or a Pensioner Concession Card.

Real-Life Example

John and Mary, a retired couple with A$600,000 in assets, receive a part pension of about AA$1,116 per fortnight combined.
Meanwhile, Margaret, a 68-year-old single pensioner with modest savings, qualifies for the full pension of AA$1,178.70.

This clearly shows how income and assets influence your payment under the means test.

Practical Steps

1. Check Eligibility: Use the Services Australia tool online.
2. Estimate Your Payment: Try the Centrelink Payment Estimator.
3. Plan Ahead: Review savings and superannuation before retirement.
4. Seek Financial Advice: A professional can help you optimise income and protect benefits.

Final Thoughts 

The newer Australian A$1116 Age Pension headlines are a bit misleading -yet the news is still good. This new change in September 2025 will maintain appropriate, inflation-adjusted support to older Australians. Remaining informed, planning, and spending money wisely will help you receive the best benefits out of your pension.

FAQs – Age Pension Increase 2025