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Australia's Age Pension is the primary source of income for many retirees, with pension advance payments allowing pensioners to receive a portion of their future pension entitlement as a lump sum. In 2022, 130,000 people retired, with an average retirement age of 64.8 years. The Age Pension provides essential support for basic living standards, and individuals can receive it fortnightly or weekly, depending on their financial situation. The pension amount varies based on income, assets, and relationship status.
| Characteristics | Values |
|---|---|
| Number of retirees in Australia | 4.2 million |
| Average age of retirees | 56.9 years |
| Average age of retirement in 2022 | 64.8 years |
| Average age of retirement for men in 2022 | 66.9 years |
| Average age of retirement for women in 2022 | 63.2 years |
| Percentage of women retirees in 2022-23 | 54% |
| Percentage of retirees with no personal income | Men: 4%, Women: 18% |
| Percentage of retired women relying on their partner's income | 31% |
| Percentage of retired men relying on their partner's income | 8% |
| Age requirement for Age Pension | 67 years |
| Age Pension payment frequency | Fortnightly |
| Maximum rate eligibility | Full pension |
| Minimum rate eligibility | Part pension |
| Age Pension payment for a single person | $944.80 per fortnight |
| Age Pension payment for each person in a couple | $762.30 per fortnight |
| Age Pension payment for a couple (combined) | $1,524.60 per fortnight |
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What You'll Learn
Pension as the main source of income for most retirees
In Australia, the Age Pension is the primary income support payment available to maintain the basic living standards of older citizens. It is taxable and paid fortnightly, with the option to receive weekly payments if you are having trouble managing your money. The pension is means-tested, taking into account your income and assets. For example, as of 20 September 2024, a single pensioner could receive income up to $212 per fortnight without affecting their pension payments.
The pension is designed to be a source of support for retirees, either as their main or only income or as a supplement to other income sources. In the 2022-23 financial year, there were 4.2 million retirees in Australia, with an average retirement age of 64.8 years. Of these retirees, 54% were women, and the pension was the main source of income for most. While the number of retired men increased more than that of women, a higher proportion of women (31%) relied on their partner's income compared to men (8%).
The Australian government encourages pensioners to supplement their pension with additional private income. The Work Bonus scheme allows pensioners to earn a certain amount from employment or self-employment without reducing their pension rate. The first $300 of income earned fortnightly is disregarded under the income test. This unused amount can accumulate in a Work Bonus Income Bank, allowing a maximum of $11,800. Additionally, pensioners can receive advance payments, which provide a portion of their future pension entitlement as a lump sum.
The Age Pension also includes a pension supplement, paid at a maximum rate to those eligible for the full pension. For those on a part pension, the supplement is reduced proportionally. The government also provides concession cards, such as the Pensioner Concession Card, which grants access to cheaper medicines and medical services.
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Eligibility criteria for the Age Pension
To be eligible for the Age Pension in Australia, you must be 67 years old or older. There are also residency requirements, and an income and assets test applies.
To meet the residency requirements, you must be an Australian resident and have lived in Australia for at least 10 years, with at least 5 of these years without a break in residence.
The income and assets test measures your income and the value of your assets. If your income or assets are above certain limits, your pension payment will be reduced, or you may not be eligible at all. Your main family home, if you live in it, isn't counted as an asset. However, if you decide to sell it, this could affect your pension. If you have any assets overseas, their value will be converted into the equivalent Australian dollar amount.
If you're legally blind and you're not claiming Rent Assistance, you may be able to claim Age Pension without being assessed against the income and assets tests. You'll need to provide an ophthalmologist report to support your claim.
If you're of Age Pension age but don't meet all the rules for Age Pension, you may be eligible for a Commonwealth Seniors Health Card. This card can give you access to cheaper medicines and may provide other concessions.
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Pension supplement and energy supplement
In Australia, the Age Pension is a taxable payment that is normally paid fortnightly. Pensioners can apply to receive weekly payments if they are having trouble managing their money. The amount of pension received depends on whether the recipient is single or part of a couple. For example, as of March 2025, a single person can receive $944.80 per fortnight, while a couple can receive $1,524.60 combined per fortnight. Pensioners who were receiving a part pension as of 19 September 2009 are on transitional rates.
If you receive the Age Pension, you will automatically get a pension supplement. The amount of the pension supplement depends on whether you are single or part of a couple. If you are eligible to receive the full pension, you will receive the maximum rate of the pension supplement. However, if you are only eligible for a part pension, your pension supplement will be reduced proportionally until it reaches the minimum amount. You can also arrange to have the pension supplement paid quarterly instead of fortnightly to help you budget for regular bills.
Additionally, pensioners may be entitled to the energy supplement. The energy supplement is available for people who had a Commonwealth Seniors Health Card before 20 September 2016. The amount of the energy supplement depends on the recipient's circumstances and whether they are single or have a partner.
Pensioners may also be eligible for other supplements and benefits, such as the Pension Concession Card (PCC), which provides extra benefits, and rental assistance for those who pay rent.
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Pension advance payments
In Australia, pension advance payments are available to those who are eligible. An advance payment is like a loan, where a portion of your fortnightly entitlement is paid early in a lump sum, which you then pay back over the next six months. To be eligible for an advance payment, you must be in receipt of a social security entitlement, such as the age pension or disability pension, and have received that entitlement for the three months immediately before applying for the advance.
The amount of the advance payment depends on the type of payment you receive. For example, if you receive the Family Tax Benefit Part A, you can get one regular advance at a time or a one-off advance at any time, but your advances cannot total more than $1,381.13. If you are single and on a full age pension, the minimum advance payment is $529.15, and the maximum is $1,587.45. For couples on a full age pension, the minimum is $398.85 each, and the maximum is $1,196.55 each. The lowest advance payment for other pensions is $250, and the highest is $500.
You can apply for an advance payment online through your Centrelink account, by phone using the self-service option, or by visiting a Service Centre. You can also apply using the Express Plus Centrelink mobile app. If you want an advance and receive the Farm Household Allowance, you need to call the Farmer Assistance Hotline and complete and submit a Claim for Special Employment Advance form.
It is important to note that you cannot get an advance if you have already received one in the past 12 months. Additionally, your future Age Pension entitlement will be adjusted for any advance payments you receive, and you will repay the amounts over time.
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Average retirement age
The average retirement age in Australia is 56.9 years, according to the Australian Bureau of Statistics. However, other sources give a slightly higher average of 59.5 for men and 52 for women, with an overall average retirement age of 55.5. In the 2022-23 financial year, the average age of retirement was 64.8 years, with men retiring at an average age of 66.9 and women at 63.2. This is an increase from the previous year's average retirement age of 56.9 years.
The retirement age in Australia is changing, and there are four distinct approaches emerging. The age at which people retire depends on a variety of factors, including their financial situation, health, and employment status. Some people may choose to retire earlier if they have a healthy super balance and can afford to self-fund their retirement years without relying heavily on the age pension. Others may pair a modest super balance with the age pension to create a passive income.
The age pension qualification age is currently 67, and this is a critical layer of income that enables people to give up full-time work and access their superannuation. However, it is important to note that people can access their superannuation at age 60, which may be considered the first retirement age.
The average age that people intend to retire is 65.4 years, which has decreased slightly from 65.5 years in 2020-21 and 65.6 years in 2018-19. Financial security is a key factor influencing the decision of when to retire.
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Frequently asked questions
As of 2022-23, there were 4.2 million retirees in Australia, with an average retirement age of 64.8 years. The pension was the main source of income for most retirees.
The income threshold for the Age Pension depends on whether you are a single pensioner or a couple. To receive the full Age Pension as a single pensioner, your income must be up to $212 per fortnight. For a couple, the combined income must be up to $372 per fortnight.
Age Pension payments are typically made fortnightly, but weekly payments are available for those struggling financially or at risk of becoming homeless.
