Age Pension increases in 2026

This blog post has been prepared by Retirement Essentials ABN 35 615 383 232 ASFL468859 

While all care has been taken to ensure that the information provided is accurate and complete at the date of publication, neither Retirement Essentials nor its employees accept liability for any loss or damage caused as a result of any use of or reliance on the information. 

Keeping ahead of the changes 

The old saying tells us that ‘forewarned is forearmed’ and this is particularly true of changes to our income. At Retirement Essentials we believe that our role is to ensure all our members are fully informed when it comes to the rules and options for retirement income. And that you know of any changes well in advance. The following overview details Age Pension updates – what might happen in 2026, when it is likely to occur – and how you can anticipate any ways in which these changes might affect your own situation. 

Age Pension payment rate increases 2026 

The basic rate of the Age Pension is scheduled for review twice a year. Changes go live on 20 March and 20 September every year. This indexation is based upon changes to the Consumer Price Index, Pensioner Beneficiary Living Cost Index and the Male Total Average Weekly Earnings. By end February the data necessary to calculate a March indexation increase has usually been released. This enables Retirement Essentials to send a newsletter with:

1. projected changes in late February (or August), 
2. a confirmation of changes by March 15 (or September 15) and
3. notice that our Age Pension Entitlement Calculator has been updated by March 20 (or September 20). 

Income and Asset Test limits 2026 

The limits for both parts of the means test are often changed on the same dates as indexation (20 March and 20 September). Additionally, both limits can change again on 1 July. We inform our members by e-newsletter of all such changes. It’s really important to keep your eye on these limits if you are ‘almost’ eligible. You can use the free Age Pension Entitlement Calculator at any time to ensure you are able to apply as soon as possible, thus mitigating the potential for delayed benefits while your application is being processed. 

Deeming Rates changes 2026 

Because of the general economic uncertainty caused by the Covid pandemic, successive Federal Governments have chosen to keep deeming rates frozen, thus giving retirees a degree of security as to their income assessments for the Age Pension or the Commonwealth Seniors Health Card (CSHC). On 20 September 2025 the deeming rates were increased for the first time in five years. The higher deeming rate meant that those on Age Pension entitlements were deemed to earn higher income and so some would have seen their payments reduced. Deeming rates can be changed again at any time, but normally they are reviewed on 1 July every year. As they remain much lower than the Reserve Bank cash rate, it is possible they will increase again on 1 July next year. Again, you can use the Age Pension Entitlements Calculator completely free of charge to check any changes to your entitlements post the 20 September changes. This handy case study of Mary and Neil helps to explain some of the intricacies of how the deeming rules can affect entitlements. 

How to stay on top of all these changes? 

The team at Retirement Essentials works hard to ensure all our information is as up-to-date as possible. We have prepared a comprehensive overview of all Age Pension rules so you can refer to that as often as you like, secure in the knowledge that it covers all relevant government changes as soon as they become law. The following aspects of the Age Pension covered in this overview: 

• How the Age Pension is calculated
• The income thresholds (How much you can earn before your pension is affected)
• The asset thresholds (How much you can own before your pension is affected)
• The current Age Pension rates
• When Age Pension rates change each year
• When the asset and income thresholds change each year
• Other changes that could occur in 2026 that could affect the Age Pension. 

We hope that this brief overview of what’s ahead for government entitlements has been helpful, but please let us know if you have any further questions we can answer on changes to retirement income in 2026. 

^{The information shown on this website contains general information only and does not take account your specific objectives, financial situation needs or personal circumstances. You should seek personal advice or professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) before making a decision about Prime Super. A copy of the PDS and Target Market Determination is available by calling 1800 675 839 or by visiting primesuper.com.au/pds}