Before proceeding, please note this article discusses a hypothetical scenario. As of September 2025, Australia’s Age Pension age remains at 67 years and has not been reduced. Always verify current pension information through Services Australia or the official myGov website.
Understanding the Age Pension Changes
If the Age Pension eligibility age were to drop to 65, it would mark a significant shift in Australia’s retirement landscape. This change would potentially benefit hundreds of thousands of Australians who’ve been waiting to access their entitlements.
The Age Pension provides financial support to older Australians who meet the age, residency, and income and assets test requirements. Let’s break down what this potential change could mean for you.
What Benefits Would Be Available?
Under current maximum rates (which would apply at age 65 if the change occurred), eligible pensioners could receive:
| Recipient Type | Maximum Fortnightly Rate | Maximum Annual Rate |
|---|---|---|
| Single | $1,116.30 | $29,023.80 |
| Couple (combined) | $1,682.80 | $43,752.80 |
| Couple (separated by illness) | $1,682.80 | $43,752.80 |
These figures include the Pension Supplement and Energy Supplement, which help cover everyday expenses and utility costs.
Additional Perks and Concessions
Beyond the fortnightly payment, Age Pension recipients gain access to valuable concessions:
- Pensioner Concession Card: Provides discounts on medicines, bulk-billed GP visits, and various state-based concessions
- Commonwealth Seniors Health Card: Available for self-funded retirees who don’t qualify for the full pension
- Rent Assistance: Additional payments for eligible renters (up to $188.80 fortnightly for singles)
- Pharmaceutical benefits: Medicines cost just $7.70 per script under the PBS
Who Would Qualify?
To be eligible for the Age Pension, you’d need to meet several criteria:
Age Requirement: Under this hypothetical change, you’d need to be 65 years or older
Residency: You must be an Australian resident and have lived in Australia for at least 10 years, with five of those years being continuous
Income and Assets Tests: Your income and assets must fall below certain thresholds. For 2025, single homeowners can have assets up to approximately $314,000 (excluding the family home) and still receive a part pension.
How to Apply
Applying for the Age Pension is straightforward through myGov. You can lodge your claim up to 13 weeks before reaching eligibility age. Make sure you’ve got your financial documents ready, including superannuation statements, bank account details, and property valuations.
Planning Your Retirement
Whether the pension age changes or not, planning ahead is crucial. Consider consulting a financial adviser to maximise your retirement income and understand how part-time work or superannuation drawdowns might affect your pension entitlements.
Frequently Asked Questions
1. Can I work while receiving the Age Pension?
Yes, you can work and still receive the Age Pension. However, your payments may be reduced depending on how much you earn. The Work Bonus scheme allows pensioners to earn up to $300 per fortnight without it affecting their pension.
2. Does superannuation count toward the assets test?
Yes, once you reach pension age, your superannuation is assessed as an asset under the assets test. Account-based pensions and allocated annuities are also included in the assessment.
3. Will my pension be adjusted for inflation?
Yes, Age Pension rates are indexed twice yearly (in March and September) in line with increases in the Consumer Price Index, Pensioner and Beneficiary Living Cost Index, or Male Total Average Weekly Earnings.
4. Can I get the Age Pension if I own my home?
Absolutely. Your family home is exempt from the assets test, regardless of its value. This means homeowners can have higher asset levels while still qualifying for a full or part pension.
5. What happens to my pension if I travel overseas?
You can generally travel overseas for up to six weeks while still receiving your full pension. For longer trips, your payment may be affected depending on the country you’re visiting and how long you’ve lived in Australia.
