The Age Pension qualifying age in Australia has seen a consistent rise for a number of years, achieving the current benchmark of 67 as of July 1, 2023. The gradual increase started in July 2017, when the pension age shifted from 65, increasing at a rate of 6 months for every 2 years. The timeline was intended to assist in the transition for Australians nearing retirement, allowing them to adjust their financial and career plans in a timely manner.
Who does the New Age Pension Rule Impact?
The increase to 67 has the greatest impact for individuals born on or after January 1, 1957. If you were born after this date, you must wait until you are 67 to be eligible for the Age Pension. Those born before this date still qualify according to a phased schedule. For instance, individuals born between July 1, 1955, and December 31, 1956, became eligible at 66 and a half years.
Planning Ahead: What You Should Know
The new rules mean that Australians who are now nearing retirement age will have to work longer before they are eligible for government assistance. It’s good to note that you can apply for the Age Pension up to 13 weeks before you turn 67, which gives some room to make your decision. On the other hand, during this prolonged waiting period, many Australians maybe heavily drawing upon superannuation savings, other income sources, and other streams of income.[4]
Why Was the Age Increased?
The increase in Age Pension eligibility is tied to the overall shifts in the Australian population. Australians are living much longer and healthier, which drastically increases the costs associated with the long retirement period and the pension system. There are efforts to shift the eligible pension age to extend the period of fiscal sustainability for the pension system. There is also a desire to motivate longer participation in the workforce, which is good for the economy and the person’s finances.
| Aspect | Details (2025) |
| Age Pension Qualification Age | 67 years (effective since July 1, 2023) |
| Fortnightly Age Pension Rates | Singles: $1,178.70 (from 20 Sep 2025)
Couple (each): $888.40 |
| Income Test Thresholds | Singles full pension threshold: $218/fortnight
Couples combined: $380/fortnight |
| Income Test Cut-off Limits | Singles: $2,575.40/fortnight
Couples combined: $3,934/fortnight |
| Asset Test Thresholds (Homeowners) | Singles: $301,750
Couples combined: $451,500 |
| Asset Test Thresholds (Non-homeowners) | Higher than homeowners to account for rent costs |
| Income Reduction Rate | 50 cents pension reduction per dollar over threshold (income or assets test) |
| Deeming Rates on Financial Assets | Lower rate: 0.25% (frozen until Aug 2025, then 0.75%)
Upper rate: 2.25% (frozen until Aug, increases to 2.75%) |
| Commonwealth Seniors Health Card Qualification Income | Singles: up to $95,400/year
Couples combined: up to $152,640/year |
| Superannuation High Balance Tax | 30% tax on earnings over $3 million superannuation balance (from July 1, 2025) |
The Minimum Age Likely to Stay Put—for Now
There are currently no plans to increase the Age Pension to be offered before 67, for 2025 this is the status quo. There is further debate in the community of whether this age should be increased, but such changes, if they are to occur, will require a lot of discussion and several years of groundwork. Thus, the 67 years of age continues to be the threshold for claiming Age Pension.
What This Means for Australians Today
For those close to the age for receiving their pensions, the advice is to ensure that these additional years of life require proper financial management. Retirement should be put off for as long as possible, super contributions should be made, and it is crucial to understand how the Age Pension will impact the overall pension income. With the Age Pension now being the new reality for most Australians, having proper income planning for retirement is now a must.
For Australians, the new age of 67 marks a steep cliff for which lots of planning, saving, and forethought must be put in. This is an important moment for the Australian social security system that attempts to balance empowering retirees with the need for age-related income security. This is a great moment for the current and future retirees as it enables them to be proactive and plan for retirement income well in advance.