Retirement income for Australians is going to rise from 20 September 2025 as the government's scheduled pension boost come into effect. This brings an important adjustment against ongoing inflation and rising cost of living. This increase will impact key payments such as the Age Pension, Disability Support Pension and Carer Payment and will deliver more financial support to older Australians and those who are dependent on these welfare programs.
The full Age Pension for singles will increase by $29.70 per fortnight which will raise the total fortnightly payment including supplements to $1,178.70. For couples, the combined increase is $44.80 per fortnight which is equivalent to $22.40 per person. This will bring the new combined total to $1,777 per fortnight. This is summed up to approximately $30,646 for a single pensioner and $46,202 for couples combined annually reflecting a meaningful boost in retirement income. This twice yearly indexation mechanism aligns pension payments with inflation and wage growth providing retirees with income that better matches increasing costs.
The increase includes $28.40 added to the maximum base rate and a $1.30 rise to the pension supplement. The energy supplement remains unchanged at $14.10 per fortnight. For couples, each member now receives $888.50 which encompasses the base rate, pension supplement and energy supplement.
The Disability Support Pension will adjust upward in line with these changes. The maximum fortnightly payment for eligible individuals aged 21 and older is about $1,149. Increases in the payment are consistent with the Age Pension indexation schedule. This supports persons with disabilities and their carers by helping to mitigate the pressures of daily expenses.
The timing of this increase is very important as it helps retirees who are hugely affected by the continuous cost pressures on essential like groceries, electricity and healthcare. The Association of Superannuation Funds of Australia (ASFA) has recently highlighted the rising cost of retirement underscoring the necessity of these pension adjustments.
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