Every two weeks, Margaret, who is 72 years old, checks her bank account before paying her electricity bill. She, like millions of other older Australians, relies on the Age Pension to help pay for rising rent, groceries, and medical bills. She is asking the same question that many retirees are: will the new rules make her better off or worse off? The changes will take effect in March 2026.
In March 2026, the federal government will make a big change to Australia’s Age Pension system. The changes will change payment rates, income and asset limits, and ways to index payments. This could change how much money pensioners get.
What Will Happen in March 2026?
The March 2026 Age Pension update is likely to make changes in three important areas:
- Every two weeks, the payment rate goes up because of rising wages and prices.
- Updated income and asset test limits that could make more or fewer people eligible.
- Review of the indexation formula, which will change how future increases are figured.
Possible changes to the taper rate, which decides how quickly payments go down as income or assets go up.
According to current estimates, the maximum Age Pension rate for singles could go up by $22 to $30 every two weeks, while couples could see their rates go up by $35 to $45 every two weeks.
But if the thresholds get stricter, people with moderate superannuation balances or investment income may get less money.
A Look at Current Payments (Before March 2026)
The maximum Age Pension rates for every two weeks starting in 2026 are about:
- Single: About $1,116 every two weeks (including extras)
- Couple (together): About $1,682 every two weeks
These numbers are updated twice a year, in March and September, based on data about inflation and wages.
The review in March 2026 is more important than regular indexing. Officials call it a “structural adjustment” to make sure that Australia can stay strong as its population gets older.
The Reason for the Shake-Up
By 2030, almost 22% of Australia’s population will be over 65 years old. The Treasury’s models show that spending on pensions could go up a lot in the next ten years.
A high-ranking government official said at a recent policy briefing:
“The changes in March 2026 are about finding a balance.” We want to keep the system going for future generations while also protecting retirees who are at risk.
At the same time, the cost of living is still very high. In some areas, food prices have gone up by more than 5% every year, and rents have gone up a lot in big cities.
The government says the changes are meant to:
- Keep inflation from hurting pensioners with low incomes.
- Better target help based on what people need.
- Make payment growth more in line with wage growth.
Who Could Benefit?
If you meet the following conditions, the changes may help you:
- You get the full Age Pension and don’t have many assets.
- You depend on the pension a lot because you don’t have much or any superannuation income.
- You rent, and the amount of help you get with your rent goes up.
- The new formula for indexing leads to faster payment growth.
- Any rise in the base rate should help low-income singles the most.
If the average increase of $25 per week for singles happens, that would be about $650 more per year.
Possible Losers in the March 2026 Update
Possible losers in the March 2026 update are:
- Part-time workers who have a small amount of superannuation.
- Retirees who own investment properties or have a lot of money.
- People who are close to the asset test cut-off points.
- People whose income is higher than the new taper rate changes.
If taper rates go up, which means payments go down faster as assets go up, some part-pensioners could lose between $10 and $80 every two weeks, depending on how much money they have.
Projected Comparison Table: Before and After March 2026
| Category | Before March 2026 | After March 2026 (Estimated) |
|---|---|---|
| Single Max Rate | About $1,116 every two weeks | $1,140 to $1,150 every two weeks |
| Couple Together | $1,682 per week | $1,720 to $1,730 per week |
| Asset Threshold (for one homeowner) | About $301,750 (the lower end of the full pension cut-off range) | There is a chance that it could go up or down. |
| CPI + Wage Benchmark | Indexation Method | Under review: a possible change in wage weighting |
Note: The final numbers will be confirmed closer to March 2026, when new economic data comes out.
What You Should Know Right Now
Even though March 2026 may seem like a long way off, it’s important to get ready.
- Take a look at your assets, such as your superannuation and investments.
- Look at the current thresholds to see how close you are to the cut-off points.
- Keep an eye on what the government says in late 2026 .
- If you are close to the edge of being eligible, think about getting financial advice.
- Don’t move big assets without knowing how it will affect your pension.
Small changes to your finances, like giving away assets or taking out super, can have a big impact on whether or not you can get a pension.
