$841 + $21 Increase to Age Pension in 2025: Who Will Receive It and When?

In 2025, Australian seniors can look forward to a significant increase in their Age Pension benefits. The government has confirmed an $841 base payment, with an additional $21 increase, bringing the total amount to $862. This increase is a welcome relief for retirees who rely on the Age Pension to cover their living expenses. If you’re a senior citizen in Australia, this article will guide you through how to access this increase, check eligibility, and understand the payout schedule.

What is the Age Pension?

The Age Pension is a government payment provided to seniors who are 65 years or older, to support them financially during retirement. The payment helps cover everyday living costs, such as housing, food, utilities, and healthcare. The Age Pension is paid out by the Department of Social Services through Centrelink and is designed for seniors who meet certain residency and income requirements.

In 2025, eligible recipients will see a $841 base pension plus a $21 increase, totaling $862 per fortnight. This increase is part of the government’s regular adjustments to ensure that pension payments keep pace with inflation and rising living costs.

Eligibility for the Age Pension in 2025

To be eligible for the Age Pension in 2025, applicants must meet the following criteria:

1. Age Requirement

• You must be 65 years or older to qualify for the Age Pension. However, the exact age might increase as part of future government policies, so it is important to stay updated on any legislative changes.

2. Residency Requirements

• You must be an Australian resident and have lived in Australia for at least 10 years (in total). You may still qualify if you live abroad under certain circumstances, such as if you have been an Australian citizen or permanent resident for an extended period.

3. Income and Asset Tests

The Age Pension is subject to both income and assets tests. These tests are used to determine whether you qualify for the full pension amount or a reduced payment:

• Income Test: If your income exceeds a certain threshold, your pension payment may be reduced. This includes wages, investment income, and rental income.
• Asset Test: If you have significant savings or assets, this could reduce your eligibility for the full pension amount. This includes property, vehicles, and investments.

4. Australian Citizens or Permanent Residents

• You must be either an Australian citizen or a permanent resident of Australia.

How to Apply for the Age Pension Increase

If you are eligible for the Age Pension, you do not need to apply separately for the $841 + $21 increase. The Department of Social Services automatically adjusts the payments for those who are already receiving the Age Pension.

However, if you are new to receiving the Age Pension, or have not yet applied, you will need to go through the application process:

1. Submit an application online via the Centrelink website, or visit a Centrelink office in person.
2. You will need to provide supporting documents such as your identification, proof of residency, income statements, and details of your assets.

How the Age Pension Payment Works

The Age Pension payment is made fortnightly (every two weeks) to eligible seniors. The government has confirmed the increase of $21, bringing the total payment to $862 per fortnight. This payment will be deposited directly into your nominated bank account.

The following outlines how the payment schedule works:

• Payment Date: The Age Pension is usually paid on alternate Wednesdays. The exact date depends on when your payment cycle falls within the Centrelink schedule.
• Direct Deposit: Payments are typically made through direct deposit into your nominated bank account.
• Supplementary Payments: Depending on your specific circumstances, you may also be eligible for additional payments, such as the Energy Supplement, which is provided to help cover the cost of utilities.

How Will the $21 Increase Affect Your Payment?

The $21 increase will apply to seniors who are currently receiving the Age Pension. This increase is designed to assist seniors with the rising cost of living and inflation. Here’s how it affects different recipients:

• Full Pension Recipients: If you qualify for the full Age Pension, your payment will increase by $21, bringing your total payment to $862 per fortnight.
• Part Pension Recipients: Those receiving a reduced Age Pension due to income or asset limitations will also see an increase of $21, but the total payment will still be lower than the full amount.

Example Calculation:

• If you’re receiving the full Age Pension, your payment will go from $841 to $862 per fortnight.
• For part pension recipients, the increase will also be $21, but the exact amount you receive will depend on your income and asset tests.

Payment Schedule for the $841 + $21 Increase in 2025

The $862 Age Pension payment will be distributed according to the regular fortnightly payment schedule. Below are the expected payment dates for 2025:

• February 2025: Payments will be issued on the first Wednesday and the third Wednesday of the month.
• March 2025: Payments will be issued on the first Wednesday and the third Wednesday of the month.
• You can also check the Centrelink Payment Calendar for exact dates and ensure you don’t miss any payments.

How to Track Your Age Pension Payment

You can track your Age Pension payments and check the payment dates through the following methods:

• Centrelink Online Services: Use your myGov account linked to Centrelink to track your payments.
• Centrelink App: The Centrelink mobile app allows you to easily track your Age Pension payments on the go.

Conclusion

The $841 + $21 increase in the Age Pension for 2025 will provide much-needed relief for seniors living on a fixed income. The increase helps to offset the rising cost of living and inflation, giving Australian seniors more financial stability. By checking your eligibility, understanding the payout schedule, and staying informed about changes to your payment, you can make the most of your Age Pension in 2025.

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