$987.70 + $28.30 Pension Boost in May 2025: If you’re wondering about the $987.70 + $28.30 pension boost in May 2025, you’re not alone. With the rising cost of living and economic uncertainty, many older Australians are looking for clear, reliable information on what this increase means, who qualifies, and when payments will arrive. In this guide, we break down everything you need to know in simple, clear language—whether you’re a retiree, a carer, or a financial professional advising clients on retirement planning.
$987.70 + $28.30 Pension Boost in May 2025
The $987.70 + $28.30 Age Pension increase in May 2025 provides crucial financial support for Australia’s retirees, helping them manage rising living costs while ensuring a fair and dignified standard of living. Whether you’re preparing for retirement or assisting someone who is, understanding these changes can help you plan better, apply sooner, and avoid missed entitlements.
| Aspect | Details |
|---|---|
| Effective Date | 20 March 2025 |
| Single Pensioner Rate | $1,149.00 per fortnight (up from $1,120.70) |
| Couple (each) Rate | $866.10 per fortnight |
| Couple (combined) | $1,732.20 per fortnight |
| Base Increase | $987.70 + $28.30 supplement (single) |
| Eligibility Age | 67 years (as of 1 July 2025) |
| Income Test Threshold | Up to $212/fortnight (single), $372/fortnight (couple) for full pension |
| Assets Test Threshold | Up to $314,000 (single homeowner), $470,000 (couple homeowners) |
| Next Indexation | 20 September 2025 |
| Official Source | Services Australia |
What Is the $987.70 + $28.30 Pension Boost in May 2025?
The pension boost of $987.70 + $28.30 refers to the new base pension rate plus the supplementary payments available for eligible single pensioners starting from 20 March 2025. While the changes were applied in March, recipients will see the adjusted amounts continue through May 2025 and beyond.
This biannual increase is part of the Australian Government’s automatic indexation system, which adjusts pensions based on either the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index—whichever results in a higher payment.
These increases aim to ensure that pensioners maintain their purchasing power as living expenses rise.
Who Is Eligible for the Pension Increase?
1. Age Requirements
From 1 July 2025, you must be at least 67 years old to qualify for the Age Pension. This age requirement has been gradually increasing over the years and has now reached its final threshold.
2. Residency Requirements
You must:
- Be an Australian citizen or a permanent resident
- Have lived in Australia for at least 10 years, including 5 continuous years
Some exemptions apply for refugees and other humanitarian entrants.
3. Income and Assets Test
The Age Pension is means-tested, meaning your eligibility and payment amount are affected by your income and assets.
Income Test (As of March 2025)
- Single person full pension: Earn up to $212 per fortnight
- Couple full pension: Earn up to $372 per fortnight combined
- Taper rate: Pension reduces by 50 cents per dollar over the threshold
Assets Test (Homeowners)
- Single: Full pension if assets are under $314,000
- Couple: Full pension if combined assets are under $470,000
For non-homeowners, these thresholds are higher.
What Does the New Pension Rate Cover?
The new Age Pension rates include:
- Base Pension: Core component of the payment
- Pension Supplement: Helps cover everyday costs like utilities and phone bills
- Energy Supplement: Small extra payment for energy costs
For singles, the total is now $1,149.00 per fortnight, while for couples, it’s $1,732.20 combined.
This represents an increase of roughly $28.30 for singles, reflecting growing utility and household costs.
When Will the May 2025 Payments Be Made?
Age Pension payments are made fortnightly by Centrelink, either through direct deposit or mailed cheques. Here’s the schedule for May 2025:
- Payment Date: Thursday, 1 May 2025
- Direct Deposit Receipt: Likely by 7 May 2025
- Cheque Receipt (if applicable): Around 21 May 2025
These payments will cover the pension period ending 30 April 2025.
Can You Work and Still Receive the Age Pension?
Yes—thanks to the Work Bonus.
Work Bonus Rules
- You can earn up to $300 per fortnight from work without affecting your pension.
- Unused amounts accumulate in a Work Bonus Income Bank (up to $11,800).
This is ideal for semi-retired Australians who wish to stay active in the workforce.
Advance Payments and Lump Sums
You may also be eligible for advance payments of your pension. This allows you to access some of your future payments now and repay them gradually over six months.
- Minimum: Around $500
- Maximum: Up to $1,500, depending on your current pension rate
Apply via your myGov account or through Centrelink directly.
Examples of Real-Life Scenarios
Example 1: Single Homeowner
Sarah is 70 years old and owns her home. She has $250,000 in assets and earns a small part-time income of $150 per fortnight. Sarah qualifies for the full pension and now receives $1,149 every two weeks.
Example 2: Retired Couple Renting
John and Anita are both 68, renting a unit in Melbourne. They have $600,000 in combined assets, which puts them just above the full pension limit. However, they still qualify for a part pension, estimated at $1,000 fortnightly combined.
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Frequently Asked Questions (FAQs)
Q: Can I receive the Age Pension if I live overseas?
Yes, but there are limits. Long-term overseas residents may see their payments reduced. Payments are made every four weeks instead of fortnightly.
Q: Will pension rates go up again in 2025?
Yes. The next scheduled indexation is 20 September 2025. If inflation continues to rise, pension amounts may increase further.
Q: How do I apply for the Age Pension?
You can apply via:
- myGov linked to Centrelink
- Over the phone with Services Australia
- In person at a Centrelink office
Q: What happens if I have superannuation?
Super is considered in your income and assets tests, particularly if it’s in a retirement income stream.
