How older Aussies can get more from the Age Pension increase

Older Australians will have a little extra in their wallets as of today, with the September indexation to Age Pension payments set to take effect

From September 20, 2025, those receiving the full single rate of Age Pension, Disability Support Pension, or Carer Payment, their payments will rise by $29.70 per fortnight, while couples on the full pension will receive an extra $22.40 each.

While welcome, many older Australians say the rise is quickly swallowed by bills and everyday costs, leaving little breathing room.

Following the announcement of the increase earlier this year, hundreds took to the Starts at 60 Facebook page to share their thoughts — and the message was clear: while every dollar helps, life on the pension is still a financial balancing act.

Adding to the concerns are findings from the Cost of Living Longer Report 2024, commissioned by Australian Seniors in partnership with research group MyMavins.

The study, which surveyed more than 1,000 Australians aged 50 and above, revealed just how hard rising prices are hitting older households.

However, with some clever budgeting and smart financial planning, older Aussies can make the most of this recent increase and help ease the financial strain that has become all too common during the cost of living crisis.

Carrie-Ann McLean, author of Budget Right: Eliminate debt and improve your financial and mental wellbeing,  says to make the most of the extra money coming in, “the first step is to know exactly where your money is going.”

“Take a few minutes to write down your regular bills, living costs and little extras like the coffee or lotto ticket,” she says.

“Once you can see where your dollars are flowing, you’ll be in a stronger position to decide how best to use that pension increase. Clarity gives you choice and choice reduces stress.”

McLean explains that “balance is key” and suggests using her Budget Right framework:

“My Budget Right framework is 70/10/10/10,” she explains. 

• 70% for living costs
• 10% for savings (future needs like medical or travel)
• 10% for giving or family support
• 10% for “splash cash” (the guilt-free little joys)

“Using this kind of split means your increase covers today’s needs and helps prepare for tomorrow. Even a few dollars set aside each fortnight grows into something useful over time.”

For older Australians, the pension rise may not feel like much, but with a clear plan in place, it can provide both immediate relief and longer-term security — turning a modest increase into meaningful support.

Read more: Financial security on the Age Pension: What older Aussies can do now

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.