Single age pensioners will receive an extra $29.70 per fortnight under changes to social security payments from 20 September.
Couples will get an extra $22.40 per person, per fortnight.
The Department of Social Services has just announced the next round of indexation changes to various social security payments.
Payments are indexed twice yearly to keep up with inflation.
Let's check out the details.
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New pension payments from next month
The amounts above are for age pensioners receiving the full pension payment, including the 'supplement' and 'energy supplement'.
From 20 September, the full pension will be $1,178.70 per fortnight, up from $1,149 per fortnight, for singles.
For couples, the full pension will increase to $888.50 each per fortnight, up from $866.10 per fortnight.
For those only receiving the base rate of the full pension (no supplements), you will receive a slightly lower boost — an extra $28.40 per fortnight for singles or an extra $21.40 per person, per fortnight for couples — from 20 September.
Thus, the base pension for singles will rise from $1,051.10 per fortnight to $1,079.70 per fortnight.
For couples, the base pension will lift from $792.50 per fortnight to $813.90 per fortnight.
Changes to eligibility criteria
Australians become eligible for the pension when they reach 'retirement age'.
That's 67 years for people born on or after 1 January 1957.
To be eligible for a full or part-pension, you're not allowed to earn too much income or own assets worth above certain limits.
The pension is means-tested and involves both an assets test and an income test to confirm your eligibility.
The value limits on income and assets for the full pension will not change next month, but the limits for a part-pension will.
This means more Australians will qualify for a part-pension from 20 September.
We outline the existing limits for a full pension, and the soon-to-be-increased limits for a part-pension, below.
Assets test: How much can you own and still get the pension?
The pension assets test incorporates ASX shares, international shares, bonds, investment properties, superannuation, and cash savings.
The value of your home is not included in the assets test.
If you do not own your main residence, you are allowed to own a higher value of assets and still get a full or part-pension.
Currently, single homeowners can own $321,500 in assets and still qualify for the full pension. This is not changing on 20 September.
If you own assets worth more than $321,500, you may qualify for a part payment.
The upper threshold for that part payment will increase on 20 September from $704,500 to $714,500.
Single non-homeowners can own $579,500 in assets and qualify for the full pension. Again, this threshold is not changing.
If you own assets worth more than $579,500, you may qualify for a part-payment.
The upper threshold for a part pension will lift from $962,500 to $972,500 from 20 September.
Couple homeowners can own $481,500 in assets and qualify for the full pension. This is not changing on 20 September.
If you own assets worth more than $481,500, you may now qualify for a part payment if your assets do not exceed $1,074,000, up from $1,059,000.
Couple non-homeowners can own $739,500 in assets and still get the full payment. Again, this threshold will remain in place.
If you own assets worth more than $739,500, you may now qualify for a part-pension if your assets do not exceed $1,332,000, up from $1,317,000.
Income test: How much can you earn and still get the age pension?
Australians aged 67 or older also need to pass an income test to qualify for a full or part-pension.
Once again, the income limits for a full pension will not change on 20 September, but the limits for a part-pension will.
Here's how.
Currently, singles can earn $218 per fortnight, and couples can earn $380 combined per fortnight, and still qualify for the full age pension.
That will remain the case next month.
From 20 September, singles who earn more than $218 per fortnight may qualify for a part payment if their income does not exceed $2,575.40 per fortnight, up from $2,516 per fortnight.
Couples who earn more than $380 per fortnight may qualify for a part payment if their income does not go above $3,934 per fortnight, up from $3,844.40 per fortnight.
How much money do you need in retirement?
According to the Australian Retirement Standard, a comfortable retirement costs $73,875 per annum for couples and $52,383 for singles.
A modest retirement costs $48,184 for couples and $33,386 for singles.
That's if you own your own home. Read more here.
If you rent where you live, your retirement will cost more.
The Association of Superannuation Funds of Australia (ASFA), which created the Retirement Standard in 2004, estimates that a modest retirement for renters costs $64,259 per annum for couples and $46,663 per annum for singles. Read more here.
