Kaye Fallick

Kaye is a retirement commentator and coach, with 25 years’ experience writing about retirement income. She has authored two books on life stage changes – Get a New Life and What Next? – and enjoys regular radio and podcast appearances. Her favourite mission is to offer plain English explanations of complex rules so that all retirees can benefit. She is based in Melbourne but enjoys escaping to Italy whenever possible.
Age Pension changes 1 July 2025

Age Pension changes 1 July 2025

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On 1 July three important Age Pension limits will change. These changes will affect all full Age Pension and part-Age Pension recipients as well as all those who are yet to qualify. 

The changes were announced on 12 June by Minister for Social Services, Tania Plibersek. The Minister described the changes as further ‘cost of living relief’ for more than 2.4 million recipients of social security payments. The rates, thresholds and limits are increasing by 2.4%, says Ms Plibersek, to ensure they keep pace with the cost of living (with the CPI rising by 2.4% in the year to 31 March).

Here’s a brief overview of the different thresholds and how they have been increased.

Are you missing out on cost of living relief?

Are you missing out on cost of living relief?

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While inflation has eased off a little, prices are still increasing annually at a rate of 2.4% according to the latest annual CPI data for 31 March 2025. 

Those living on a restricted retirement income are all too aware of the difference that higher prices make to monthly budgets, particularly on items such as insurance, medical visits and pharmaceutical needs.

So it remains surprising that nearly one quarter of all retirees (about one million) are continuing to miss out on significant savings. This was highlighted by General Manager of Services Australia, Hank Jongen, on breakfast TV.

The savings referred to are those which can be accessed by holders of the Commonwealth Seniors Health Card (CSHC). Whilst a Pension Concession Card (PCC) is automatically issued to the two-thirds of retirees who qualify for a full or part-Age Pension (after age 67), the very handy concession card for those who are self-funded tends to slip right under the radar. Which is surprising, as, according to Hank Jongen, it can be worth up to $3000 per annum or $60,000 across a 20-year retirement.

Don’t make money mistakes that you can’t undo

Don’t make money mistakes that you can’t undo

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It’s never too late to manage your money more effectively whether for – or already in – retirement.

But there are some money mistakes that should be avoided at all costs – those that can leave you with a lifetime of regret.

Today we recount stories of five very avoidable mistakes (not using real names). These examples are not intended to alarm you, but rather to encourage a review and  – if needed – a rethink of your strategies to ensure that you are maximising your potential income – and not the opposite.

1. Spending too little

Misunderstanding minimum withdrawals

John and Maya both retired as soon as they could, which meant 69 for John and 67 for Maya. As homeowners, they had (combined) a super balance of $380,000 (well below the asset limit of $470,000 for a full Age Pension as well as deemed income limits). So they have been living on a full Age Pension of just over $45,000 per annum. They believed that they were also able to withdraw super at the rate of 5% per annum as a top up. This amounts to $19,000 per annum, which makes their total retirement income about $64,000 per annum. They had plans to manage this income fairly frugally in order to travel every two years or so, for five weeks in Australia or the occasional three week trip overseas. Their house is large and has required quite a lot of their income for maintenance and minor, age-friendly, upgrades. But their plans are now unlikely to come to fruition, as John has received a diagnosis which suggests he has less than two years to live. They have maintained health insurance so believe that their medical bills will be largely covered. But the lost opportunity to have more adventures together is now a painful reality.