$841 Age Pension Increase + $21 Bonus in 2025: In 2025, the Australian Government introduced a $841 Age Pension increase alongside a $21 one-time bonus to help older Australians cope with the rising cost of living. This change is part of a broader social support update aimed at strengthening financial security for retirees. Whether you’re currently receiving the Age Pension, planning for retirement, or supporting someone who is, this guide explains everything you need to know — from updated payment amounts to eligibility, key dates, and how to maximize your entitlements.
$841 Age Pension Increase + $21 Bonus in 2025
The 2025 Age Pension increase of $841, along with the $21 cost-of-living bonus, is a much-needed relief for older Australians facing the challenges of rising living costs. Whether you’re planning retirement or already enjoying it, understanding how the system works can help you make smarter financial decisions, avoid overpayments, and unlock additional benefits.
| Feature | Details |
|---|---|
| Annual Pension Increase | $841 per year (equivalent to $21 extra per fortnight) |
| One-Time Bonus | $21 cost-of-living bonus added to the first 2025 payment |
| Effective Date | January 1, 2025 |
| Eligibility Age | 67 years and older |
| Residency Requirement | 10 years in Australia, with at least 5 years continuous residence |
| Income and Asset Tests | Must be below Centrelink thresholds |
| New Fortnightly Rate (Single) | $1,144.40 (up from $1,116.30) |
| New Fortnightly Rate (Couple) | $1,725.20 combined (up from $1,682.80) |
| Official Source | Services Australia – Age Pension |
Why the Increase Matters?
The Age Pension is the main source of income for millions of older Australians. With inflation and energy prices on the rise, this boost provides a small but meaningful increase in financial support.
The $841 annual increase ensures that eligible recipients receive an extra $21 per fortnight, beginning from January 1, 2025. The increase is automatically applied — no action is needed if you’re already receiving the pension.
Additionally, a one-time $21 bonus was added to the first payment of the year, as a cost-of-living supplement.
New Payment Rates for 2025
Here’s a breakdown of the updated Age Pension rates for the January 2025 cycle, which includes the base rate, the pension supplement, and the energy supplement:
Single Pensioners
- Previous Fortnightly Total: $1,116.30
- New Fortnightly Total: $1,144.40
Couples (Combined)
- Previous Fortnightly Total: $1,682.80
- New Fortnightly Total: $1,725.20
These figures reflect the full rate. Partial payments may apply based on your income and assets.
2025 Age Pension Payment Dates
The Age Pension is paid every two weeks (fortnightly). Here are the confirmed payment dates for the first half of 2025:
- January: 3rd, 17th, 31st
- February: 14th, 28th
- March: 14th, 28th
- April: 11th, 25th
- May: 9th, 23rd
- June: 6th, 20th
Payments are made directly to your bank account, usually available by early morning on the due date.
Eligibility Criteria for Age Pension (2025)
To qualify for the Age Pension, you must meet three key criteria:
1. Age Requirement
- From July 1, 2023, the qualifying age is 67.
- This applies to both men and women.
2. Residency Rules
You must:
- Be an Australian resident, and
- Have lived in Australia for at least 10 years, including at least one continuous 5-year period.
Refugees and certain humanitarian entrants may be exempt from the 10-year rule.
3. Income and Assets Test
Your income and assets must be below limits set by Centrelink. These limits change every March and September.
Examples:
- Single homeowner: Asset limit for full pension ≈ $301,750
- Couple homeowner: Asset limit for full pension ≈ $451,500
- Income threshold for part pension: Single ≈ $60,632; Couple (combined) ≈ $93,600
How to Apply for $841 Age Pension Increase + $21 Bonus in 2025 or Update Details?
If you are not already receiving the Age Pension, you can apply online through myGov, linked to Centrelink. You’ll need to provide:
- Proof of age and residency
- Details of income (e.g., superannuation, dividends)
- Asset records (e.g., property, vehicles, shares)
Already a recipient? Changes in your circumstances (such as selling a home or getting an inheritance) should be reported via myGov or by calling Centrelink to avoid overpayments or underpayments.
Practical Tips to Maximize Your Entitlements
- Get Free Financial Information Service (FIS) Advice
Services Australia offers free FIS sessions to help you understand how the pension and other benefits work together. - Check for Additional Benefits
In addition to the base Age Pension, you may qualify for:- Rent Assistance
- Commonwealth Seniors Health Card
- Utility and Travel Concessions
- Carer Allowance, if you support someone full-time
- Report Changes Promptly
Updating Centrelink on time can help avoid overpayment debt or missed entitlements. - Combine with Superannuation Smartly
Drawing down from your super may still allow for a part-pension. Seek professional financial advice to balance income streams.
What to Watch in the Future?
- Indexation Adjustments: Pensions are reviewed twice a year — in March and September — based on inflation and wage growth.
- Policy Updates: Governments may introduce future bonuses or adjust thresholds in upcoming budgets.
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Frequently Asked Questions (FAQs)
Is the Age Pension increase automatic?
Yes. If you’re already on the Age Pension, you’ll receive the increased amount automatically — no need to apply.
When will I receive the $21 bonus?
It was included in the first Age Pension payment for 2025 (paid January 3, 2025).
Can I receive Age Pension while working part-time?
Yes. You can work and still receive a pension, depending on your income level. Check the Work Bonus scheme that lets you earn up to $300 per fortnight without affecting your pension.
Is superannuation counted in the assets test?
Yes, but how it affects your pension depends on your age and whether the super is in an income stream or accumulation phase.
Can I live overseas and still receive Age Pension?
You may receive the pension overseas for up to 26 weeks. Longer stays may affect your eligibility. Special rules apply depending on your country of residence.
