2025 Centrelink Age Pension: The Centrelink Age Pension is a crucial financial support system for Australian retirees. If you’re approaching retirement and wondering, “Am I eligible for the Age Pension with $60,000 in savings?”—this guide breaks it down in simple terms.
Understanding the Centrelink income and assets test, along with payment rates and schedules, can help you plan your retirement better. Let’s explore how your savings impact your pension eligibility in 2025, with practical examples, frequently asked questions, and expert insights.
2025 Centrelink Age Pension
| Category | Details |
|---|---|
| Eligibility Age | 67 years old (as of 2025) |
| Residency Requirement | 10 years in Australia (with at least 5 years continuous) |
| Assets Test (Homeowner – Single) | Below $280,000 for full pension |
| Assets Test (Homeowner – Couple) | Below $419,000 for full pension |
| Income Test (Single – Full Pension) | Below $190 per fortnight |
| Income Test (Couple – Full Pension) | Below $336 per fortnight |
| Max Age Pension (Single) | $1,144.40 per fortnight |
| Max Age Pension (Couple Combined) | $1,725.20 per fortnight |
| Official Centrelink Website | Services Australia |
With $60,000 in savings, you’re likely eligible for the full Centrelink Age Pension in 2025 if you meet the age and residency requirements. Since your assets and deemed income fall within the allowed limits, your fortnightly payment could be as high as $1,144.40 (single) or $1,725.20 (couple combined).
Eligibility for Centrelink Age Pension in 2025
1. Age and Residency Requirements
To qualify for the Age Pension in 2025, you must:
- Be at least 67 years old.
- Have been an Australian resident for at least 10 years, with at least 5 years being continuous.
If you’re unsure about your residency status, visit the Services Australia website to check eligibility.
Many applicants mistakenly assume that time spent overseas disqualifies them. However, temporary absences generally don’t impact eligibility unless they exceed five years.
2. The Assets Test
The assets test determines how much pension you can receive. Your total assets include savings, property (excluding your primary home), vehicles, investments, and valuable belongings. Here’s how it works:
- If you’re a homeowner, your asset limit for a full pension is $280,000 (single) or $419,000 (couple).
- If you don’t own a home, your asset limit is $504,500 (single) or $643,500 (couple).
Example: If you own a home and have $60,000 in savings, you’re well under the asset threshold and could qualify for a full pension.
Many retirees choose to invest in home renovations or prepaid funeral expenses to remain under the asset limits and maximize their pension eligibility.
3. The Income Test
The income test considers all income sources, including wages, rental income, dividends, superannuation, and deemed income from savings. The deeming rates for financial assets are:
- 1.75% per annum for the first $56,400.
- 3.25% per annum for amounts exceeding $56,400.
Example: If you have $60,000 in savings:
- $56,400 is deemed to earn 1.75% = $987 annually.
- The remaining $3,600 earns 3.25% = $117 annually.
- Total deemed annual income = $1,104 (~$42.46 per fortnight).
This is well below the income limit of $190 per fortnight for a single person, making you eligible for the full pension.
Retirees who receive additional income from rental properties or casual work should report their earnings regularly to avoid overpayments and penalties.
Payment Rates and Dates for 2025
1. How Much Age Pension Can You Get?
As of 2025, the maximum fortnightly Age Pension payments are:
- Single: $1,144.40
- Couple (combined): $1,725.20
These rates are adjusted twice a year in March and September based on inflation.
2. When Are Payments Made?
Centrelink Age Pension payments are made fortnightly. The exact date varies, but you can check your payment schedule through your myGov account.
Tip: Link your Centrelink account to myGov to receive updates on payment dates and pension adjustments.
How to Apply for the Age Pension in 2025
- Check Eligibility: Use the Centrelink Age Pension Calculator.
- Prepare Documents: You’ll need ID, residency proof, tax details, and asset declarations.
- Apply Online: Submit an application through myGov.
- Attend Interviews: Centrelink may require additional information.
- Receive Decision: Processing times vary but typically take 4-6 weeks.
Applicants should avoid common mistakes such as underreporting assets or failing to update their details when financial circumstances change.
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FAQs About 2025 Centrelink Age Pension
1. Will my pension reduce if I have more savings?
Yes, if your assets or deemed income exceed the threshold, your pension payment may be reduced.
2. Can I work and still receive the Age Pension?
Yes! The Work Bonus Scheme allows you to earn up to $300 per fortnight without affecting your pension.
3. What happens if I inherit money?
Any inheritance is counted as an asset and may impact your pension. Centrelink will reassess your eligibility.
4. Do I need to reapply for the Age Pension every year?
No, but Centrelink conducts regular reviews. You must report any significant changes in income or assets.
5. Where can I check my payment details?
You can view your Age Pension balance, payment schedule, and adjustments through your myGov account.
