Big age pension changes are coming on 20 September – here’s what they mean for you
And in today's newspapers around the country 'Why Australians fear this stage of life more than we think.'
In this edition
Feature: Big age pension changes are coming on 20 September – here’s what they mean for you
From Bec’s Desk: So much purposeful work
SMH/TheAge: Why Australians fear this stage of life more than we think
Prime Time: What being the executor of a will ACTUALLY looks like
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Big age pension changes are coming on 20 September – here’s what they mean for you
If you’re retired (or thinking about it) and get any form of age pension, 20 September 2025 is a date you’ll want to circle. The Age Pension is about to change in two ways – and depending on your situation, you’ll either come out a little further ahead or find the system clawing some of it back.
This is the biggest pension boost in years
From September, the maximum Age Pension will rise thanks to indexation – the automatic adjustment that happens twice a year to keep payments in step with living costs.
Singles will get an extra $29.70 per fortnight, taking the full rate to $1,178.70.
Couples will get an extra $22.40 each per fortnight, taking the combined payment to $1,777.00.
It’s the biggest bump in two years. For many retirees, that’s a welcome lift when the cost of groceries, power bills, and petrol just keeps edging higher.
The flip side – deeming rates are back on the move for the first time in three years
Here’s where it gets interesting. For three years, deeming rates – the rates Centrelink uses to “deem” how much income your savings and investments are earning – have been frozen holding eligibility for the pension using the income test artificially low. That freeze shielded part-pensioners from cuts while interest rates soared and gave a lot of people access to the Commonwealth Seniors Health Card too. But those days are now firmly OVER!
From the 20 September 2025, the freeze ends. Deeming rates will rise by 0.50% across both the lower and higher bands and this will particularly affect those assessed by the income test.
Full pensioners with few assets? You’ll likely keep the full boost to age pension rates.
Part-pensioners with super or investments? You could see some, or all, of that increase to pension rates clawed back. Why? Because Centrelink will assume your money is earning more in their calculations – whether it is or not.
People who can’t get the pension but are getting the income tested Commonwealth Seniors Health Card - now might find that in jeopardy.
About half a million Australians are using the income test for their Pension eligibility - and at least a third of them are said to be affected by this change.
Why this matters for your retirement planning
For retirees already in the system, this is a timely reminder that the age pension rules aren’t fixed. A government tweak here or there can change how much lands in your bank account each fortnight, and over time the government will continue to tweak the rules to suit their revenue models.
For pre-retirees, it’s a wake-up call: relying solely on the Age Pension is tough. The pension system is designed as a safety net, not a luxury. And while deeming rates are finally on the move after three years, they’re still well below what your super fund is likely earning and can earn on balanced or growth settings. In practice, that means the system will usually assume you’re earning less than you really are — but it also shows how easily a policy change can affect your retirement income.
This is why building extra buffers – through super, savings, or investments – matters so much. The more you control, the less you’re at the mercy of policy shifts.
The bottom line
From 20 September, there’s more money for everyone on the pension. But if you’ve got assets that are generating an income, Centrelink’s update to the deeming rate might take away with one hand what indexation gives with the other.
So stay alert!
It’s been a long, tiring, but wonderful week on the road — and worth every moment. Things kicked off with Bill McDonald on 4BC Radio Monday morning, then a full hour of radio on ABC Late Nights that evening. (I couldn’t believe how many people tune in to that show — the messages afterwards were amazing!)
The week wrapped up on Saturday at GMHBA Stadium in Geelong, keynoting a Lifestyle Communities event about the six pillars of an Epic Retirement. The energy in the room was incredible — such a powerful reminder of why these conversations matter.
And in the middle of all that, we officially launched something I’m so proud of: The Epic Retirement Tick, powered by Chant West. We’ve set out 18 criteria to measure how well super funds are serving their members as they approach and enter retirement. To earn the Tick, a fund has to score above the median on at least 12 of those 18. On 2 October, we’ll announce — through the media — which funds hit the mark. You can learn more or register to get the free report here.
Why? Because retirement products and services have been neglected for too long. Even the regulator says progress on retirement by funds is ‘patchy’. The Epic Retirement Tick is about shining a spotlight on the funds that are stepping up — and giving you the power to ask your own fund: are you prioritising retirement, or not? Together, we can raise the bar.
In between, I squeezed in an appearance on Today Extra to share the Tick story, signed copies of Prime Time at bookstores in Sydney and Melbourne, recorded new podcast conversations, and ran a two-hour education session for the Psychotherapy and Counselling Federation of Australia on how Prime Time and the science of modern ageing are reshaping the way we think about life after 50.
It’s been huge. But every talk, every signing, every conversation reminded me why this work matters — and why I’m so energised to keep pushing for better retirement literacy, and to make our Prime Time more visible in all of our lives then help people have an epic retirement.
Next week, our next six-week How to Have an Epic Retirement course kicks off — and I can’t wait to welcome the new group of around 300 people - our biggest ever. There’s still time to join us, and you can get 15% off with the coupon code EPICSPRING15. Register here.
Now, after a massive week, I’m off to do something completely different — heading to a disco with my daughters for a Saturday night girls’ night. And to Lions Hawks on Sunday too. After all, my prime time isn’t just about work, it’s about play too. I hope you’re catching some sunshine (and footy) this weekend — it’s been pretty wet and miserable everywhere except Melbourne this week!
And if you’re up early with a cuppa Sunday morning, I’ll be on 7 Sunrise at 8.15am Sunday 24th — tune in if you’d like to catch the conversation live.
Many thanks! Bec Wilson
Author, podcast host, columnist, retirement educator, and guest speaker
Extract of of my weekly column in The Age, The Sydney Morning Herald, Brisbane Times, WA Today on Sunday 24th August 2025.
Why Australians fear this stage of life more than we think
We spend years stressing over our super balances, trying to pick the perfect retirement age, and wondering if we’ve saved enough. But what if that’s not the only thing keeping most of us up at night?
Because for many Australians, the real fear isn’t about money. It’s about what the hell happens after we stop working.
It’s the fear of losing purpose. Losing that feeling of being useful or connected. We’re scared of drifting through 25 or 30 years without the rhythm and identity that work gives us. Once upon a time, retirement was the prize at the end of the grind - freedom from the job that wore down your body and stole your weekends. But work has changed. These days, it can be a source of social connection, meaning, and – dare I say it – even enjoyment.
So when we step away from it, the real question becomes: what now?
New data from UniSuper’s Retire with Purpose report, released this week, shows this fear is real. Yes, 68 per cent of Australians still worry about outliving their money. But 61 per cent also worry about losing the social ties they’ve built at work. That’s not a financial fear. That’s a human one. And frankly, we don’t talk about it enough.
Instead, people avoid retirement planning altogether, not because they’re broke, but because they’re terrified that even thinking about retirement makes them irrelevant. They say things like “I’m not ready” or “I don’t want to retire and fade away”. And honestly? I get it.
Read on — this article continues in The Age, The Sydney Morning Herald, Brisbane Times and WA Today. It is free to read.
What being the executor of a will ACTUALLY looks like
In this thoughtful and candid episode, I’m joined once again by the always generous and wise Mike Chesworth. After decades in financial services, Mike recently stepped into a new role — not in the boardroom, but in the deeply personal process of executing his late father’s estate.
From paperwork and probate to family dynamics and difficult conversations, Mike shares what he learned, what surprised him, and what he’d urge others to prepare for now — before the time comes.
Whether you’ve been named as an executor, are planning your own estate, or simply want to better support ageing parents — this one’s full of practical guidance and real insight.