Australia’s Age Pension remains one of the most important income supports for retirees. In March 2026, updated payment rates and threshold adjustments have again drawn attention from those nearing retirement and current pensioners wanting clarity.
If you’re planning ahead or reviewing your entitlements, this guide outlines how the Age Pension works in March 2026 — including eligibility rules, income and assets tests, supplements and recent updates.
Table of Contents
What Is the Age Pension?
The Age Pension is a fortnightly government payment that provides financial assistance to older Australians who meet qualifying conditions. It is administered by Services Australia.
Its purpose is to:
- Support retirees with limited income
- Supplement superannuation savings
- Provide a financial safety net in retirement
Payment rates are adjusted twice each year (March and September) to reflect inflation and broader economic conditions.
Age Eligibility in March 2026
To qualify for the Age Pension in March 2026, you must:
- Be 67 years old
- Meet residency, income, and asset requirements
The qualifying age of 67 applies to both men and women.
You can submit your claim up to 13 weeks before turning 67 to reduce processing delays.
Residency Requirements
Applicants must:
- Be an Australian resident
- Be physically present in Australia when lodging the claim
- Have lived in Australia for at least 10 years, including five continuous years
Certain international agreements may affect residency eligibility in specific cases.
How Payments Are Structured
The Age Pension is paid every fortnight and typically includes:
Single Pensioners
- Base pension rate
- Pension Supplement
- Energy Supplement
Couples
- Base rate per person
- Shared supplement components
March 2026 indexation has adjusted base rates and thresholds to reflect cost-of-living pressures, including increases in housing, food, and utility expenses.
Understanding the Income Test
Your pension amount is partly determined by how much income you receive.
Income may include:
- Employment wages
- Superannuation income streams
- Investment returns
- Rental income
If your income exceeds the free area threshold, your pension is reduced at a specified rate for each dollar above the limit.
Managing income carefully can help maintain higher pension payments.
Understanding the Assets Test
The assets test evaluates what you own, excluding your primary home.
Assessable assets include:
- Bank accounts and cash savings
- Shares and managed funds
- Investment properties
- Vehicles
- Superannuation (once you reach pension age)
Different asset limits apply based on:
- Homeownership status
- Single or couple status
If assets exceed the maximum threshold, your pension entitlement may decrease or stop.
Which Test Determines Your Payment?
Both the income and assets tests are applied.
The test that results in the lower pension payment determines your final entitlement.
This means:
- High assets may reduce payments even if income is low
- High income may reduce payments even if assets are modest
Understanding this interaction is critical for effective retirement planning.
March 2026 Indexation Changes
The March 2026 review reflects movements in:
- Consumer Price Index (CPI)
- Pensioner and Beneficiary Living Cost Index (PBLCI)
Updates may include:
- Increased base pension rates
- Higher-income free areas
- Adjusted asset thresholds
These changes are designed to help pensioners maintain purchasing power during periods of inflation.
Additional Supplements and Concessions
Beyond the base rate, eligible recipients may receive:
- Pension Supplement
- Energy Supplement
- Rent Assistance
- Pensioner Concession Card
The Pensioner Concession Card provides discounted medicines under the Pharmaceutical Benefits Scheme (PBS) and may also unlock state-based concessions on utilities, council rates and public transport.
These added benefits can significantly improve overall financial support.
Working While Receiving the Age Pension
Many retirees continue part-time work.
The Work Bonus allows eligible pensioners to earn employment income up to a certain limit before it reduces pension payments. Unused portions of the Work Bonus can accumulate temporarily, offering flexibility for seasonal or casual work.
This provides an opportunity to supplement income without immediately losing pension benefits.
The Role of Superannuation
Once you reach Age Pension age:
- Superannuation counts as an asset
- Income drawn from super is assessed under the income test
Different withdrawal strategies can produce different pension outcomes. Careful planning can help optimise both super income and pension entitlements.
How to Apply
Applications are made online through myGov, linked to Services Australia.
The process typically involves:
- Preparing identification and financial documents
- Linking Centrelink services
- Completing the online claim
- Uploading required documentation
Applying early can help avoid payment gaps.
Common Pitfalls
Applicants should avoid:
- Failing to update financial details
- Misreporting investment income
- Gifting assets without understanding deprivation rules
- Delaying their claim unnecessarily
Professional financial advice may help structure assets within allowable limits.
Ongoing Financial Review
Qualifying for the Age Pension is not a one-time event. Regularly review:
- Investment performance
- Household expenses
- Healthcare planning
- Housing arrangements
Policy and economic conditions may continue to evolve beyond March 2026.
Conclusion
Australia’s Age Pension in March 2026 continues to serve as a cornerstone of retirement income for many Australians. With updated payment rates and revised thresholds, understanding eligibility rules and financial tests is essential.
By planning ahead, monitoring your income and assets, and staying informed about policy updates, you can maximise your entitlements and maintain greater financial security throughout retirement.
