How much is the Age Pension in Australia?

Title
Age Pension rates
Short description

We look at what the current Age Pension rates are, how much extra income you could earn without losing benefits, and how often it’s paid.

Topics
mlc:Topics/retirement-insights
mlc:Topics/retirement
Time to read/watch
5 min
Effective date
2024-10-23 00:00
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Age Pension rates in Australia

You may be able to access government benefits like the Age Pension once you reach 67 which is Age Pension age. This essentially provides you with additional income if you don't have enough retirement savings in your super or other investments.

The kind of pension and benefits you’re entitled to generally depends on your assets and income.

In this article, we look at what the current Age Pension rates are, how much extra income you could earn without losing these benefits, and how often it’s paid.
 

Age Pension rates

These are the current Age Pension rates for a single person, and a couple, living in Australia as at 20 September 20241.

Age Pension rates for a single person

  Amount
Maximum base rate $1,047.10
Maximum pension supplement $83.20
Energy supplement $14.10
Total (per fortnight) $1,144.40
Total (per year)^ $29,754.40

 

Age Pension rates for a couple (living together)

  Amount (each) Amount (combined)
Maximum base rate $789.30 $1,578.60
Maximum pension supplement $62.70 $125.40
Energy supplement $10.60 $21.20
Total (per fortnight) $862.60 $1,725.20
Total (per year)^ $22,427.60 $44,855.20

Source: Services Australia. Applicable 20 September 2024 to 19 March 2025
^Annual amounts are approximate

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Can I earn extra income without losing Age Pension benefits?

Yes, the Government is enabling people on the Age Pension to receive extra income without losing their pension benefits.

To receive the full Age Pension as a single pensioner, you can receive income up to $212 per fortnight. A couple (living together) can receive income  up to $372 per fortnight, combined, before it affects pension payments. This is known as the ‘income free amount’.

If you receive the part Age Pension as a single pensioner, it cuts out if your income is $2,500.80 (up to $3,822.40 for couples living together) per fortnight or more.
 

Age Pension Work Bonus

The Work Bonus enables you to earn a certain amount of income from employment or self-employment to top up your Age Pension.

The first $300 of income you earn from paid work each fortnight is ignored when determining your Age Pension under the income test. This is on top of the income free amount.

Any portion of the $300 that is not used, accumulates into a Work Bonus Income Bank which you can use in the future.

People who start to receive the Age Pension for the first time are eligible for an upfront deposit into their Work Bonus income bank of $4,000, in addition to the fortnightly $300 Work Bonus amount. Existing Age Pensioners were provided a similar credit between 1 December 2022 and 31 December 2023.

The combination of the additional $4,000 credit as well as any fortnightly unused portion of the $300 Work Bonus allows a maximum of $11,800 to be accumulated in your Work Bonus Income Bank. Your Work Bonus balance begins accumulating from the day you become eligible for Age Pension payments, even if you’re not working.

Age Pension rates: case study example

Julie has just commenced receiving the age pension and works as a casual nurse, earning $350 a fortnight. She has no income other than the pension.

Her employment income is first reduced by the fortnightly work bonus of $300. As Julie has just commenced receiving the age pension, she has the $4,000 credit in her Work Bonus income bank. The remaining $50 will reduce her income bank by this amount. This means that there is no impact to Julie’s age pension based on her employment income.

Assuming Julie continues to receive $350 a fortnight, her income bank would not reduce to zero for 80 fortnights. During this time, her employment income would be reduced to zero for age pension purposes.

Further examples of the work bonus calculation can be viewed on the Australian Government’s Social Security Guide.
 

Age Pension residence requirements

To qualify for the Age Pension, you must be 67 or older and an Australian resident (that is, living in Australia on a permanent basis). You must have also lived in the country for at least 10 years.

You must also have lived in Australia for at least 5 years consecutively, and you’ll need to be in the country on the day you apply for the pension.

If you’re not an Australian resident, there are some circumstances in which you could be eligible for the Age Pension.

Special rules apply to you if you are from countries with which Australia has an International Social Security Agreement. Residence in these countries may count towards the minimum 10-year residence requirement.

When is the next Age Pension rate increase?

Generally, the Age Pension rates are reviewed and increase on 20 March and 20 September each year.
 

How often is the Age Pension paid?

The Age Pension payments are made fortnightly for most people with some exceptions.

If you’re having issues managing your money, or are at risk of becoming homeless, you can apply to receive your payments weekly.
 

Financial wellbeing in retirement

If you’re eligible for the Age Pension and approaching retirement age, you don’t necessarily have to spend all your super before applying for pension payments.

If you’d like some help assessing your eligibility for benefits, and strategies to improve your retirement savings, a financial adviser may help set you on the right track.

Their job is to help you with every aspect of your financial life, while keeping you on track to achieve your goals. Start the conversation to see how a financial adviser can help you.

1 Services Australia: https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?

 

Are you on track for retirement?

Use these calculators to see how much you'll need—and how close you are to reaching your goals.
 

Get started

 

Related links

Retirement age in Australia

How much money do you need to retire?

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  • This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). The information in this article is current as at June 2024 and may be subject to change. This information may constitute general advice. The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 132 652 or by searching for the applicable product at mlc.com.au. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Opinions constitute our judgement at the time of issue. The case study examples (if any) provided in this article have been included for illustrative purposes only and should not be relied upon for decision making. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.