The idea that Australia’s Age Pension might end in 2025 is simply myth. In reality, the system remains firmly intact and is actually being improved with modest rate boosts, threshold adjustments, and supportive legislative reforms to ensure its long‑term sustainability.
This article provides an in‑depth, accurate breakdown of everything every senior should know—from payment details to eligibility thresholds, plus upcoming forecasts for the rest of 2025.
The End of the Age Pension? — The Simple Truth
Contrary to rumors, there are no current plans to abolish or end the Age Pension. In fact, experts like EquipSuper affirm the framework is strong, sustainable, and highly unlikely to be scrapped.
Pension Disqualification Limits (Max Income)
- Single: $2,516 pf (~$65,416/year)
- Couple: $3,844.40 combined (~$99,954/year)
Assets Test Thresholds
| Type | Full Pension Threshold | Increase |
|---|---|---|
| Single homeowner | $321,500 | +$7,500 |
| Single non-homeowner | $579,500 | +$13,500 |
| Couple homeowners | $481,500 | +$11,500 |
| Couple non-homeowners | $739,500 | +$17,500 |
Highlights
1. No Plan to End the Age Pension
There is no government plan to terminate the Age Pension. On the contrary, the system remains highly sustainable and politically vital—designed to coexist with Australia’s compulsory superannuation framework.
2. Regular Indexed Increases Keep Pace with Inflation
- On 20 March 2025, pensions were increased:
- Singles: $1,149 per fortnight (~$29,874/year)
- Couples (each): $866.10 per fortnight (~$22,519/year)
- Couples (combined): $1,732.20 per fortnight (~$45,037/year) .
- Another adjustment came into effect on 1 July 2025, adding 2.4% indexation to payments and raising thresholds for greater eligibility.
3. Eligibility Thresholds Updated July 2025
- Asset Test (full pension cut‑off):
- Single homeowner: now $321,500
- Non‑homeowner single: $579,500
- Couple (combined, homeowner): $481,500
- Couple (non‑homeowner): $739,500.
- Asset Test (part pension cut‑off):
- Single: $704,500
- Couple (combined): $1,059,000.
- Income Test (part pension thresholds as of July–September 2025):
- Single: $2,510 per fortnight (~$65,260/year)
- Couple (combined): $3,844.40 per fortnight (~$99,954/year).
4. Indexation Drives Sustainability
Australia’s Age Pension model relies on steady indexed adjustments (biannual March and September, plus midst that in July) that maintain benefit relevance and financial viability .
5. It’s Eating Less of the Budget Pie & Staying Politically Secure
The Age Pension remains a small but strategic portion of GDP—around 2.3%, versus the OECD average of 9%—making it financially sustainable and politically untouchable .
Quick Reference
| Aspect | 2025 Update / Status |
|---|---|
| Pension Ending? | Not ending; firmly in place |
| Pension Rates (per fortnight) | Single: $1,149; Couple (each): $866.10, Combined: $1,732.20 |
| Full Pension Income Thresholds | Single: $218; Couple (combined): $380 |
| Part-Pension Income Caps | Single: $2,516; Couple: $3,844.40 |
| Full Pension Assets Limits | Single homeowner: $321,500; Couple: $481,500 |
| Pension Eligibility Age | 67 years (unchanged) |
| SG Rate (Employer Super) | 12% |
| Transfer Balance Cap | Now $2.0 million |
| System Sustainability | Cost-effective and resilient, backed by superannuation |
The Age Pension is not ending in 2025—quite the opposite. It remains a critical and evolving part of Australia’s retirement safety net.
With incremental rate increases, updated eligibility thresholds, and broader reforms like higher super contributions and a raised Transfer Balance Cap, the system is being strengthened for current and future retirees.
It’s designed not just to endure, but to better serve as retirement dynamics shift. Stay informed—your planning journey depends on it.
FAQs
Is the Age Pension really ending in 2025?
Absolutely not. There is no policy or legislative signal to terminate the Age Pension. Even in 2025, payouts continue with updated rates and thresholds—strong evidence of long-term commitment.
What new eligibility thresholds apply from 1 July 2025?
Income: Full pension thresholds increased to $218 (single) and $380 (couple) fortnightly.
Assets: Increased to $321,500 (single, homeowner) and $481,500 (couple, homeowner) for full pension eligibility
Could I lose eligibility or see reduced benefits?
Possibly, if your income or assets exceed updated limits (July 2025)—see the asset and income threshold table above. Keep track and plan accordingly to retain full or partial pension eligibility.