Imagine reaching 65 and knowing you’re finally eligible for a government pension—without having to wait until 67. That’s precisely what’s happening in Australia: from October 2025, the pension age is shifting back to 65 for certain groups.
This change could make a big difference for many retirees, especially those in physically demanding jobs. Read on to learn who qualifies, what benefits you’ll receive, and how to get started with the application.
Who Is Eligible for the Age Pension at 65 (Starting October 2025)?
To receive the Age Pension at 65, you must satisfy both residency and income/assets criteria.
Residency Requirements
- You must be an Australian resident and have lived in Australia for a required minimum period (often 10 years or more).
- Some exceptions or transitional arrangements may apply for people with mixed residence histories.
Income & Assets Tests
Your eligibility is also tested via:
- Income Test – your earnings from work, investments, and other sources.
- Assets Test – the value of your property, savings, vehicles, investments, etc.
These thresholds differ for:
- Singles vs. couples
- Homeowners vs. non-homeowners
You can always check the current limits on the Services Australia website to ensure you pass both tests.
Payment Amounts from October 2025 – What You’ll Receive
How Much Will You Receive at Age 65?
Payment amounts are based on:
- Your relationship status (single or couple)
- Whether you own your home or rent
- Your assessed income and assets
These pension rates are indexed twice a year, including adjustments around March and September, to account for inflation and cost-of-living increases.
What Expenses Can the Pension Help Cover?
The Age Pension is designed to assist with essentials such as:
- Groceries and food
- Utility bills (electricity, water, gas)
- Healthcare and medical costs
- Daily living expenses (transport, clothing, etc.)
Why Returning to Age 65 from October 2025 Matters
This change—effective from October 2025—is significant for several reasons:
- Better for physically demanding work: Many older workers cannot continue high-strain jobs into their late 60s.
- Earlier financial security: People who retire or need to stop work early won’t be forced to wait extra years.
- More predictable planning: Families and individuals can map retirement with clearer timelines around when support begins.
How to Apply for the Age Pension (October 2025 and Beyond)
Steps to Apply
- Start early. Begin gathering documents well before you turn 65—especially if your 65th birthday falls around October 2025, when the new rule starts.
- Choose your method:
- Apply online via the Services Australia portal
- Visit a local Services Australia Centre in person
- Submit required documents:
- Identity proof (passport, driver’s license, etc.)
- Residency history
- Income sources and assets evidence (bank statements, property valuations, etc.)
If approved, payments typically start from the date you become eligible or from when your application is processed—whichever is later.
FAQs About the October 2025 Pension Age Change
Q1: When will this change take effect?
The change will officially start from October 2025, with eligibility moving back to age 65.
Q2: Will everyone aged 65 automatically get the pension?
No — you still must pass the income and assets tests, and meet residency requirements.
Q3: If I’m already over 65 but under 67, can I apply now?
Yes — once the October 2025 rule is active, you can apply if you meet all conditions.
Q4: Do the pension rates increase?
Yes — pension rates are indexed twice a year to keep pace with inflation and cost of living rises.
Q5: Can I work while receiving the pension?
Yes, but any earnings may be assessed under the income test, which could reduce your pension amount.
Conclusion
The October 2025 return of the pension age to 65 marks a meaningful shift in Australia’s support for older citizens. By restoring earlier access to retirement payments, the government is offering more flexibility and security to those who may not manage to keep working until 67.
If you or someone you know is approaching this age, now is the time to check eligibility, gather documentation, and prepare your application.
Want help checking your eligibility or finding the right forms? I can guide you step by step — just ask!