Age Pension Changes from March 2026: What Retirees Need to Know
From 20 March 2026, Centrelink will implement its regular indexation changes to the Age Pension, affecting payment rates as well as income and asset test cut‑off limits. These changes will impact more than 2.5 million Australians, including many retirees and pre‑retirees here in South Australia.
While most pensioners will welcome a modest increase in payments, changes to deeming rates mean the outcome won’t be the same for everyone.
Higher Age Pension Payments
From March:
- Single Age Pensioners will receive an increase of $22.20 per fortnight, bringing the total payment to $1,200.90 per fortnight.
- Couples will receive an increase of $16.70 per person per fortnight, with each partner now receiving $905.20.
These increases are designed to help offset ongoing cost‑of‑living pressures.
Higher Income Test Limits
The income test cut‑off thresholds are also increasing, allowing pensioners to earn more before losing eligibility:
- Singles: cut‑off rises to $2,619.80 per fortnight
- Couples (combined): cut‑off rises to $4,000.80 per fortnight
This is particularly relevant for retirees with part‑time work, investment income, or account‑based pensions.
Higher Asset Test Cut‑Offs
Asset limits have increased as well, which may allow some Australians to retain or regain a part Age Pension.
Homeowners
- Single: up to $722,000 in assets
- Couple (combined): up to $1,085,000
Non‑homeowners
- Single: up to $980,000
- Couple (combined): up to $1,343,000
These changes are especially important for retirees who have downsized or are holding higher cash balances.
Important: Deeming Rates Are Increasing
While thresholds are rising, deeming rates are also increasing, which may reduce Age Pension entitlements for some retirees with financial assets.
From March 2026:
- 1.25% applies to the first $64,200 (singles) or $106,200 (couples combined)
- 3.25% applies to balances above those amounts
Centrelink will now assume higher income from savings, investments and super — even if actual returns are lower.
What This Means
Most pensioners will see a small increase, but some may see little benefit or even a reduction due to higher deeming rates. This reinforces the importance of regular Age Pension and retirement strategy reviews.
If you’d like to understand how these changes affect your situation, please contact your adviser.
Sam Martin CFP®
Authorised Representative (No 252676)
