We use cookies to improve your experience on our website.  By continuing you acknowledge cookies are being used. View the privacy policy. 

How much is the Age Pension in Australia

Title
How much is the Age Pension in Australia

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.

Key takeaways:
  • If you’re an Australian resident and able to access the full Age Pension, you can receive up to $1,116.30 per fortnight for singles and $1,682.80 for couples (combined)
  • The new Age Pension rates came into force on 20 March 2024.
Mature couple looking at mobile phone

The above rates are payable from 20 March 2024 and may be indexed in future. 

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 age, 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.

What makes you eligible for the Age Pension?

Generally, to be eligible for the Age Pension, you must be 67 or older, be an Australian resident and have lived in Australia for at least 10 years as well as meet the income and assets tests.

We explain these in more detail below. 

Residence requirements

To qualify for the Age Pension, you must be an Australian resident (that is, living in Australia on a permanent basis) and have 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 residences in countries with which Australia has an International Social Security Agreement. Residence in these countries may count towards the minimum 10-year residence requirement.

Age Pension rates for a single person

 

Amount

Maximum base rate$1,020.60
Maximum pension supplement
$81.60
Energy supplement$14.10
Total (per fortnight)$1,116.30
Total (per year)^$29,023.80

Age Pension rates for a couple (living together)

 

Amount (each)

Amount (combined)

Maximum base rate$769.30$1,538.60
Maximum pension supplement$61.50$123.00
Energy supplement$10.60$21.20
Total (per fortnight)$841.40$1,682.80
Total (per year)^$21,876.40$43,752.80

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

Can I earn extra income without losing pension benefits?

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

To receive the full Age Pension as a single pensioner, you can earn up to $204 per fortnight. A couple can earn up to $360 per fortnight, combined, before it affects pension payments. This is known as the ‘income free amount’.

To receive the part Age Pension as a single pensioner, you can earn up to $2,436.60 (up to $3,725.60 for couples) per fortnight.

The Work Bonus

On top of your income, the Work Bonus allows you to earn an additional income per fortnight from employment or self-employment before your pension payments are affected.

This means 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. 

However, since 1 January 2024, 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. A similar credit for existing Age Pensioners applied between 1 December 2022 and 31 December

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. Once you exceed this, you won’t be able to receive anymore. Your Work Bonus balance begins accumulating from the day you become eligible for Age Pension payments, even if you’re not working.

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 at guides.dss.gov.au/social-security-guide/3/1/15/40

When is the next Age Pension increase?

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

Increases are likely but not certain because the Australian Bureau of Statistics evaluates these increases based a variety of different factors.

How often is the Age Pension paid?

The 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 you’re eligible 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.

Articles you may find helpful

6 steps to financial wellness in retirement

Title
6 steps to financial wellness in retirement
Teaser Title
Effective Date
2024-12-10 14:22
Short Description
In retirement, managing your finances wisely and staying flexible can help you make the most of your hard-earned savings. Here’s a six-step checklist to support your financial health throughout retirement.
Feature Image
/content/dam/anzsc/images/tiles/News/women-discussing-retirement-plans.jpg
Link to content page
/content/anzsc/en/news/6-steps-to-financial-wellness-in-retirement
News Label
Retirement
News Label
Retirement

What to do if you're 55 and have no retirement plan

Title
What to do if you're 55 and have no retirement plan
Teaser Title
Effective Date
2024-09-09 12:59
Short Description
If you’re thinking, "I'm in my 50s and I have no retirement plan. What do I do now?", first of all, take a deep breath, as it’s not too late to start planning for your retirement.
Feature Image
/content/dam/anzsc/images/tiles/News/mother-daughter-looking-at-laptop.jpg
Link to content page
/content/anzsc/en/news/what-to-do-if-you-are-55-and-have-no-retirement-plan
News Label
Retirement
News Label
Retirement

How much money do you need to retire

Title
How much money do you need to retire
Teaser Title
Effective Date
2024-05-29 01:17
Short Description
There’s a whole host of factors that will determine your lifestyle in retirement – super, savings, tax, investment strategy and more. There are tools and strategies that can help you enjoy your retirement if you start preparing for it now.
Feature Image
/content/dam/anzsc/images/tiles/News/smiling-woman-in-living-room.jpg
Link to content page
/content/anzsc/en/news/how-much-money-do-you-need-to-retire
News Label
Retirement
News Label
Retirement

Contact us

Get online

Register for online access to your ANZ Smart Choice Super account in less than two minutes.

If you’ve already registered, log in to manage your account.

Need help?

Message or call the ANZ Smart Choice Super team on 13 12 87 weekdays 8.30am to 6.30pm (AEST).

 

Find out how our Hearing and interpreting services can support you.

This information has been prepared by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346) (OPC) as Trustee of Retirement Portfolio Service (ABN 61 808 189 263). ANZ Smart Choice Super suite of products which includes ANZ Smart Choice Super and PensionANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees. ANZ Smart Choice Super is part of the Retirement Portfolio Service. OPC 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)

This information is general in nature and does not take into account your objectives, financial situation and needs. Before acting on any of this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs. You should consider obtaining financial advice before making any 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 or insurance. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling 13 12 87 or by searching for the applicable product on our website at anz.com

Any general tax information provided is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

Opinions constitute our judgement at the time of issue and are subject to change. Neither OPC nor any member of the Insignia Financial Group, nor ANZ, accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.

The Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) (ANZ) brand is a trademark of ANZ and is used by OPC under licence from ANZ. ANZ and the Insignia Financial Group are not related bodies corporate. ANZ does not stand behind or guarantee these products.

© Australia and New Zealand Banking Group Limited (ANZ) 2021 ABN 11 005 357 522. ANZ's colour blue is a trademark of ANZ.

You need Adobe Reader to view PDF files. You can download Adobe Reader free of charge.

View ANZ Privacy Statement

View OPC (Issuer) Privacy Statement