In 2025, many Australian seniors are choosing to work beyond retirement age to supplement their income. Fortunately, the government supports this by allowing pension and work combinations—within set income limits. Whether it’s casual shifts, consulting, or regular part-time jobs, seniors are now able to earn more without immediately losing their benefits.
Understanding the income threshold is key, as going over it can impact your Centrelink earnings. The system has been updated to encourage active aging while still protecting pension payments for eligible individuals.
Updated Income Limits and Thresholds in 2025
The government has slightly increased the income limits for pensioners who wish to stay employed. As of this year, seniors receiving the Age Pension can earn up to the following before their payments are affected:
| Category | Fortnightly Limit | Annual Limit |
|---|---|---|
| Single Pensioner | $204 | $5,304 |
| Couple (Combined) | $360 | $9,360 |
Those who exceed these income threshold values may see a gradual reduction in their pension rather than a complete stop. This flexibility allows pensioners to take part-time jobs without fearing total loss of benefits.
Types of Jobs Pensioners Are Taking in 2025
The most common part-time jobs among pensioners include:
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Retail and hospitality shifts
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Childcare and aged care roles
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Seasonal agriculture work
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Administrative and tutoring roles
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Freelance or consulting gigs
These roles offer flexibility and allow seniors to stay active while benefiting from Centrelink earnings regulations that support modest extra income.
How Centrelink Assesses Your Earnings
Centrelink calculates Centrelink earnings based on your fortnightly income. If you stay under the income threshold, your full Age Pension is unaffected. If your income exceeds the income limits, your payment is reduced by 50 cents for every dollar over.
Thanks to the Work Bonus scheme, the first $300 earned per fortnight from employment doesn’t count toward the income test—giving working pensioners even more breathing room.
Why Working in Retirement Makes Sense
Working later in life offers more than just money. Beyond financial benefits, pension and work arrangements help seniors:
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Stay socially active and connected
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Maintain mental and physical health
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Explore new interests or revisit previous careers
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Feel a stronger sense of purpose post-retirement
As long as you stay within the income limits, you can enjoy all of these benefits without compromising your Centrelink earnings.
FAQs
Can pensioners work and still receive full Age Pension?
Yes, if they stay within the defined income limits, pensioners can receive their full Age Pension while working.
What’s the income threshold for single pensioners in 2025?
Single pensioners can earn up to $204 per fortnight without their pension being reduced, under the current income threshold rules.
Do part-time jobs count toward Centrelink earnings?
Yes, all part-time jobs and income-generating activities are assessed under the Centrelink earnings income test.
What is the Work Bonus and how does it help?
The Work Bonus excludes the first $300 of fortnightly work income from the income limits, allowing pensioners to earn more without losing benefits.
Is it worth working while on a pension?
Absolutely. With updated rules on pension and work, many seniors are choosing flexible work to boost income, stay active, and improve quality of life.