Australia Aged Pension Increase in 2024 – Eligibility, Payout Dates & How to Claim
If you’re an older Australian, the Aged Pension is crucial for maintaining financial security as you enter retirement. With inflation rising, many are asking how the Aged Pension will be adjusted in 2024 and when the next payments will be issued. In this guide, we’ll explain the upcoming increases to the Aged Pension, eligibility requirements, and everything you need to know about when payments will be made and how to apply.
By Maude Abbott
Published on November 27, 2024
Aged Pension Increase in 2024: What You Need to Know
The Aged Pension in Australia is increasing in 2024 to help older Australians keep up with rising costs due to inflation. Understanding the eligibility criteria, how to apply, and knowing when the next payment is due is crucial for anyone relying on this financial support. This article will walk you through the key details, including the next payment date, the amount of the increase, and how to apply.
Key Details of the 2024 Aged Pension Increase
| Aspect | Details |
|---|---|
| Aged Pension Increase | Based on the March 2024 Consumer Price Index (CPI) review to adjust for inflation |
| Eligibility Criteria | Australian citizens and permanent residents aged 66+ meeting income and asset tests |
| Next Payment Date | September 20, 2024 (following quarterly indexation) |
| Increase Amount | Expected increase of $20-$30 per fortnight, depending on CPI |
| Key Resource | Services Australia Official Website |
What is the Aged Pension?
The Aged Pension is a government benefit designed to provide financial assistance to eligible Australians who are retired or nearing retirement. To qualify, individuals must meet certain age, residency, and means tests. The pension is paid fortnightly to help pensioners maintain a basic standard of living, especially when their income from savings or superannuation is insufficient.
The Aged Pension is means-tested, meaning the payment amount depends on both your income and assets. Those who qualify receive a regular payment that can help cover everyday living expenses.
How Does the Aged Pension Increase Work in 2024?
The Australian Government adjusts the Aged Pension payments to keep up with inflation and the rising cost of living. The pension is reviewed and indexed four times a year, with changes typically made in March, June, September, and December.
In 2024, the increase will occur after the March CPI (Consumer Price Index) review. The CPI measures inflation, so when the cost of goods and services rises, so does the Aged Pension to ensure recipients can maintain their purchasing power. The amount of the increase varies, but it usually falls between $20 and $30 per fortnight.
How Much Will the Aged Pension Increase in 2024?
The precise increase for 2024 depends on the results of the CPI indexation, but in past years, the increase has ranged from $20 to $30 every fortnight. The pension is typically indexed based on two key factors:
- CPI (Consumer Price Index): This measures inflation, which directly affects the cost of goods and services.
- Wage Growth: In some cases, the Aged Pension may increase based on wage growth if it outpaces inflation.
In most years, however, the CPI is the main factor for determining the pension increase. As inflation rises, pension payments are adjusted accordingly.
Aged Pension Eligibility in 2024
To qualify for the Aged Pension, you must meet specific criteria, including age, residency, and income and asset limits. Here’s a breakdown of the eligibility requirements:
1. Age Requirement
The minimum age for the Aged Pension in 2024 is 66 years and 6 months, for those born between January 1, 1957, and June 30, 1958. However, for people born after January 1, 1959, the eligibility age rises to 67 years.
2. Residency Requirement
You must be an Australian citizen or permanent resident and have lived in Australia for at least 10 years, with at least five years of continuous residency.
3. Income Test
Your income from all sources, such as wages, pensions, or investments, is assessed to determine eligibility. In 2024, the income limits for full pension eligibility are:
- Single pensioners: $1,075.40 per fortnight
- Couples: $1,613.40 per fortnight
If your income exceeds these thresholds, the amount of your pension will be reduced.
4. Asset Test
The Asset Test considers the value of your assets, including your home, superannuation, savings, and investments. As of 2024, the asset limits for full pension eligibility are:
- Single pensioners: $270,500
- Couples: $405,000
If your assets exceed these limits, your pension payment will either be reduced or you may not qualify for the Aged Pension.
How to Claim the Aged Pension Increase
If you’re eligible for the Aged Pension and wish to claim it, here’s a step-by-step guide:
Step 1: Gather Required Documents
Before applying, gather necessary documents such as:
- Proof of identity (passport, birth certificate)
- Proof of residency (Australian passport, residency visa, etc.)
- Income and asset records (bank statements, superannuation details, investment income)
Step 2: Complete the Application
You can apply for the Aged Pension online via your MyGov account, which links to Centrelink. Alternatively, you can visit a Centrelink office for help.
Step 3: Submit Your Application
Once your application is complete, submit it via MyGov or at your local Centrelink office. Be mindful that the process can take several weeks, so apply well ahead of your eligibility date.
Step 4: Wait for Approval
Centrelink will review your application and notify you of the decision. If you’re approved, you’ll begin receiving fortnightly payments.
When Is the Next Aged Pension Payment?
The Aged Pension is paid every second Thursday, on a fortnightly basis. The next payment will be made on September 20, 2024, following the quarterly CPI increase.
To confirm your specific payment schedule, check your Centrelink account or refer to the official payment calendar on the Services Australia website.
With the 2024 increase to the Aged Pension, eligible Australians can expect some relief to help with the rising cost of living. Make sure to stay on top of payment dates and eligibility to maximize the support available to you.
