Older Australians are paying close attention to the $845 pension that will roll out in 2025. This new payment, made every two weeks, is meant to help seniors deal with the rising costs of groceries, electricity bills, and everything else that is getting more expensive. Knowing whether you meet the requirements and how to apply is the first step in planning your finances.
The New Pension in Simple Terms!
The $845 pension every two weeks is the government’s newest move to support senior Australians. It is part of the wider Age Pension system and aims to help retirees cope with rising living costs. Only people who meet the rules set by Services Australia will see that amount in their bank accounts. The payment size is adjusted regularly to keep up with inflation, so pensioners will continue getting what they need to keep their household running.
For most retirees, the Age Pension is the biggest slice of their income pie, so any shifts in payment size or who can get the benefit touch many household budgets.
Who Gets the New Payment: The Rules!
To get the full $845 payment every two weeks, you need to meet a few important rules:
Age: You need to be at least 67 years old. That age is for anyone born on or after January 1, 1957.
Residency Status: To get the pension, you need to have been living in Australia for the past ten years, and the last five have to be one long stretch – no gaps.
Income and Assets Tests: Your money and what you own must be below set limits. If you have just a little income and not much saved, you can get the full pension. If you have more, you might still get a smaller, partial pension.
For single people, some people are talking about dropping the get-the-full-pension threshold for what you own. Right now, it’s 470,000.Theyarethinkingaboutloweringitto200,000, according to a few ideas doing the rounds. If that happens, some people who were getting the full amount might see a change.
Extra Help and Supplements
The pension isn’t just one amount; other money can be added on to help you more.
Commonwealth Rent Assistance: If you rent and get the pension, you can get some more money each fortnight. The maximum extra amount is $212, and whether you get that much depends on how much rent you pay. That’s the new top amount since the September 2024 bonus of ten percent.
Energy Supplement: This extra is for everyone, and it shows up in every pension payment to help pay the power bill. It’s a steady amount, so you won’t need to apply for it separately.
Pensioner Concession Card: Every person getting a pension gets one of these cards, which unlocks savings on doctors’ visits, medicines, and many other services, including some utility bills.
Recent Changes and Future Outlook!
The pension landscape keeps changing to meet shifting economic times. Seniors see the pension amount move twice a year, in March and September, when the government adjusts for changes in prices. These bumps are meant to stop rising costs from eroding savings, but some groups believe the increases fall short of the true extra costs many older Australians face.
Looking forward, some Church and charity groups are recommending reforms that could reshape pensions. They think hands on superannuation tax relief could boost the pension some people see on payday. Their studies show towns and suburbs that rely heavily on welfare would feel the biggest benefit, especially when they are farther from city centres.
How to Apply and Verify Eligibility!
If you’re getting close to retirement, get ready early. You can start the Age Pension claim up to three months before your 66th birthday. Just use your myGov account connected to Centrelink or drop by a Centrelink Service Centre for help.
To find out what benefits you might qualify for or how much you might receive, visit Services Australia’s website where calculators and step-by-step details are available. You can also get one-on-one help with your application by calling the Older Australians Line at 132 300.
With more people in Australia reaching retirement age, the government has to balance keeping the pension system strong and still giving older people the support they need. This balancing act is a key issue for planners and a worry for today’s retirees as well as for those still preparing for retirement.