Age Pension increase March 2026: how much could you get and who is now eligible?

More than 2.5 million Australians could receive more government Age Pension following recent changes in payment rates and eligibility cut-offs², with full Age Pension recipients to receive up to $22.20 more per fortnight.

Approximately one in three CFS customers who check their eligibility end up qualifying for the Age Pension, according to data from CFS partner Retirement Essentials.

About three‑quarters of people found to be eligible are not currently receiving Centrelink benefits, meaning the Age Pension increases and threshold changes could mean an entirely new income stream for retirees who qualify for the first time.

On average, people who apply late miss out on around $18,000 in payments, Retirement Essentials estimates, so it’s worth checking if you qualify sooner rather than later.

The Age Pension rates for March 2026 were indexed to account for increases in the cost of living and include the base pension, pension supplement and energy supplement.

Compared with the previous rates, the increase amounted to $22.20 per fortnight for singles and $16.70 per person per fortnight for couples.

Payments last increased in September 2025 and are likely to change again when they are next assessed in September 2026.

The table below shows the maximum Age Pension payment amounts from 20 March 2026.

_{Department of Social Services Indexation Rates March 2026. *Includes basic rate plus maximum pension and energy supplements.}

Tip: Many people assume they’re not eligible for either a part- or full Age Pension and therefore apply late or miss out on this and other government benefits. 

To be eligible for the Age Pension, you must be 67 years of age or older and meet the residence rules. Then whether you receive a full pension or a part pension must be determined.

The amount of Age Pension you receive is decided by two separate means tests:

• the income test.
• the assets test.

The test that results in the lower payment is the one that applies. 

Your income affects how much Age Pension you receive. Under the income test, you can earn up to a certain amount before your Age Pension starts to reduce.

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).

If your income is less than $2,619.80 per fortnight for a single person, or $4,000.80 per fortnight for a couple (combined), you may now qualify for a part-pension.

To be eligible for a full Age Pension, income must be less than $218 per fortnight for a single person, or $380 for a couple.

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

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

Income test thresholds from 20 March 2026 are shown below.

Once you exceed the lower threshold:

• single pensions reduce by 50 cents for each dollar earned
• couples’ pensions reduce by 25 cents per person for each dollar earned.

Tip: The  Work Bonus  allows you to work and earn up to $300 per fortnight without affecting your Age Pension. If you don't work, this amount accrues up to a maximum Work Bonus balance of $11,800.  New pensioners have a starting Work Bonus balance of $4,000.

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, most other assets are counted, including:

• savings and term deposits.
• shares and managed investments.
• superannuation (once you reach Age Pension age).
• vehicles, boats and household contents.
• investment properties.

If your assets total less than the part-Pension cut-off of $722,000 for a single homeowner and $1,085,000 for a couple homeowner, you could qualify for a part-Age Pension.

If your assets total less than $321,500 for a single homeowner and $481,500 for a couple homeowner, you could get the full Age Pension.

Assets test thresholds from 20 March 2026 are outlined below.

Above the lower threshold, Age Pension payments reduce by $3 per fortnight for every $1,000 of assets.

Many Australians who qualify for the Age Pension receive a part-pension, rather than the full amount.

With the indexation of part-Age Pension cut-off limits, many more retirees are now likely to qualify.

Even if you only qualify for a small amount, that may unlock other benefits via the Pensioner Concession Card. 

Deeming rates are used to estimate income from financial investments, regardless of what those investments actually earn.

From 20 March 2026, deeming rates are:

• 1.25% on the first $64,200 for singles or $106,200 for couples.
• 3.25% on balances above those amounts.

Because Age Pension payments may reduce as deemed income increases, higher deeming rates will reduce payments for some retirees.

However, for many people, the impact is smaller than expected once higher pension rates are factored in.

The Age Pension is indexed twice a year, in March and September, to keep pace with the cost of living.  

The main indicators used to measure this are the Consumer Price Index, the Pensioners and Beneficiaries Living Cost Index and Average Weekly Earnings provided by the Australian Bureau of Statistics.

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. 

To be eligible for the Age Pension, you must meet all of the following:

• be 67 years or older
• meet Australian residency requirements
• pass the income test
• pass the assets test

You can apply up to 13 weeks before reaching Age Pension age, which may help you avoid missing out on payments.

The Age Pension and super are 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 means you can enjoy the added comfort of additional income in retirement sooner. 

The Age Pension system is more flexible than many people realise.

While the rules are detailed, a few principles can make a meaningful difference:

• understand how your assets are assessed.
• consider how your super is structured as you approach retirement.
• be aware of deeming rates and how they affect assessed income.
• review eligibility regularly, especially after major life changes.
• consider obtaining financial advice to avoid unintended consequences.

With rates updated and thresholds changing, running the numbers is essential.

CFS has partnered with Retirement Essentials to ensure you can:

• estimate your entitlement using a part pension calculator.
• explore how income or asset changes affect payments.
• see whether you qualify for the Age Pension or the Commonwealth Seniors Health Card.
  

If you do not qualify for the Age Pension, you may still be eligible for the Commonwealth Seniors Health Card.

For self‑funded retirees, the card can deliver meaningful savings through cheaper medicines and other concessions.

The income limits applying as at 20 March 2026 are:

• Single: $101,105 per year
• Couple (combined): $161,768 per year

The income test for the CSHC is based on adjusted taxable income and deemed income from account based pensions³.

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