Age Pension increase: current rates and who is eligible

These are the maximum fortnightly rates. They include the Pension Supplement and Energy Supplement¹.

Effective 20 September 2026. Source: Indexation Rates September 2026, Department of Social Services¹.

That works out to roughly $32,180 a year for a single person and $48,516 a year for a couple combined. These are maximums — many people receive less, because the income and assets tests reduce the payment.

However, more than 2.7 million Australians² could receive higher Age Pension payments, with full single Age Pension recipients to receive up to $36.80 more per fortnight. 

Three things need to line up for someone to be eligible to receive the government Age Pension, and these are assessed by Services Australia:

1. Your age. Age Pension age is 67. There are no plans to change it.
2. Residence. Generally, you need to be an Australian resident and have been one for at least 10 years, including a five-year unbroken period. There are exceptions, so check the residence rules.
3. The income and assets tests. Both are applied, and whichever produces the lower payment is the one that applies. It’s possible to pass one test comfortably only to find your payment is reduced by the other.

For the full eligibility picture, see our Age Pension guide.

Your income affects how much Age Pension you receive. Under the latest income test limits and cut-off amounts: 

• To be eligible for a full Age Pension, your income must be less than $226 per fortnight for a single person, or $396 for a couple.
• To be eligible for a part-Age pension: Your income must be less than $2,701.40 per fortnight for a single person, or $4,128.00 per fortnight for a couple (combined).

Above the part-Pension fortnightly income cut-off point, the payment falls to zero.

Source: Services Australia – Income test.

Income includes:

• employment income.
• rental income.
• deemed income from financial investments such as bank accounts, shares, managed funds and super (once you reach Age Pension age).

Keep in mind that deeming rates used to estimate the income Age Pension recipients receive from their financial investments also increased on 20 September 2026.

The increase means retirees will be deemed to receive more income than previously from the same amount of financial investments.

The Work Bonus allows you to work and earn up to $300 per fortnight without affecting your Age Pension. 

The assets test looks at what you own, rather than what you earn, to determine your Age Pension eligibility and the payment amount. 

Importantly, your family home is exempt from the assets test. However, almost everything else counts including: savings and term deposits, shares and managed investments, super (once you reach Age Pension age), vehicles, boats and household contents, investment properties.

• To be eligible for a full Age Pension: Your assets must total less than $333,000 for a single homeowner and $499,000 for a homeowner couple.
• To be eligible for a part-Age Pension: Your assets must total less than the part-Pension cut-off of $745,750 for a single homeowner and $1,121,000 for a homeowner couple.

Source: Services Australia – Assets test. 

Above the lower threshold, Age Pension payments reduce by $3 per fortnight for every $1,000 of assets and $1.50 per fortnight for each member of a couple.

A single homeowner with $500,000 in assets is well above the full-pension limit but still comfortably inside the part-pension range. That’s why it's worth checking if you’re eligible, rather than assuming you don't qualify.

Rather than count what your savings and investments actually earn, Services Australia applies deeming — an assumed rate of return on your investments — to estimate your income under the income test⁴.

If your investments earn more than the deemed rate, the extra doesn't count as income under the test. Deeming also keeps your payment steady instead of fluctuating with markets.

While the balance at which the deeming thresholds apply did not change on 20 September, the deeming rates increased. 

Source: Services Australia – Deeming

The Age Pension is indexed each year on 20 March and 20 September, to keep pace with the cost of living, measured by consumer price and wages benchmarks.

Age Pension income and assets test cut-off limits are dependent on Age Pension payment rates, so if the base Age Pension rate increases, the cut-off limits for these tests will also increase. 

For most Australians, retirement income comes from both the Age Pension and super, and they were designed to work in tandem to provide financial security and dignity in retirement. 

Many people underestimate how much Age Pension they may be entitled to, or don’t realise they may be eligible.

Applying early reduces the risk of missing out on payments you may be eligible for, and could provide an additional income stream in retirement, sooner.

It may also help you gain earlier access to the benefits associated with the Pensioner Concession Card, which may include lower costs for healthcare, prescription medicines, utilities and council rates.

The Age Pension rules are detailed, but they are more flexible than many people realise. It’s important to:

• understand how your assets are assessed.
• consider how your super is structured.
• understand how deeming rates affect assessed income.
• review eligibility regularly, especially after major life changes.
• consider obtaining financial advice to avoid unintended consequences.

Even if you do not qualify for the Age Pension, you may still be eligible for the Commonwealth Seniors Health Card, which can deliver meaningful savings through cheaper medicines and other concessions.

The income limits applying as at 20 September 2026 are:

• Single: $105,048 per year
• Couple (combined): $168,076 per year

The income test for the CSHC is based on adjusted taxable income and deemed income from account based pensions. There is no assets test for the CSHC.

CFS has partnered with Retirement Essentials to provide a free Age Pension Eligibility Calculator to help you work out if you’re eligible for the Age Pension (or the Commonwealth Seniors Health Card), and how much you could receive.  

Check your eligibility