The March 2026 indexation of the Age Pension has brought some welcome increases for retirees, but it also highlights an important point — ensuring your Centrelink details are accurate and up to date is critical to receiving the correct entitlement.
At MLS Financial, we regularly see clients either underpaid or at risk of overpayment simply because their information with Centrelink isn’t current. Understanding how these updates work — and what you need to do — can make a meaningful difference to your retirement income.
What Changed in March 2026?
As part of the government’s regular indexation process (which occurs every March and September), Age Pension payments have increased to reflect rising living costs.
From 20 March 2026:
- Single pensioners receive approximately $1,200.90 per fortnight
- Couples receive around $905.20 per person per fortnight
This represents an increase of roughly $22.20 per fortnight for singles, helping to offset cost-of-living pressures.
These adjustments are linked to inflation and wage growth to ensure pension payments maintain their purchasing power over time.
Changes to Deeming Rates
Alongside payment increases, deeming rates have also risen, which can impact how your pension is calculated.
From March 2026:
- First portion of financial assets deemed at 1.25%
- Remaining assets deemed at 3.25%
Deeming is used by Centrelink to estimate the income your financial assets generate. As these rates increase, some retirees may see a reduction in their Age Pension entitlement, depending on their asset position.
Why This Matters for Your Retirement Income
While the pension increase is positive, the combination of:
- Indexation changes
- Deeming rate adjustments
- Income and asset thresholds
means your actual payment may not simply increase — it could stay the same or even reduce depending on your circumstances.
This is where proactive planning becomes essential.
The Importance of Keeping Your Centrelink Details Updated
Centrelink calculates your Age Pension based on the information you provide — including:
- Bank account balances
- Investments and superannuation
- Property (excluding your home)
- Income (including part-time work or income streams)
- Relationship status
If this information is outdated or incorrect, it can lead to:
Commonwealth Rent Assistance
Underpayments – You may receive less than you are entitled to.
Overpayments – You may be paid too much and later required to repay Centrelink.
Missed Opportunities – You may qualify for additional benefits such as:
- Part Age Pension
- Pensioner Concession Card
Common Situations That Should Trigger an Update
Many people don’t realise how often Centrelink should be updated. You should review your details if you experience:
- Selling or purchasing investments
- Changes to superannuation balances or income streams
- Receiving an inheritance or lump sum
- Downsizing your home
- Changes in relationship status
- Starting or stopping work
Even small changes can impact your entitlement.
A Simple Example
A retiree with $300,000 in financial assets may see their deemed income increase due to higher deeming rates.
If Centrelink is still using outdated balances or old assumptions, their pension could be:
- Calculated incorrectly
- Lower than it should be
- Or flagged for adjustment later
Regular reviews help ensure you’re always receiving the correct amount.
How MLS Financial Can Help
At MLS Financial, we assist clients with:
- Understanding how Centrelink calculates entitlements
- Reviewing assets and income for accuracy
- Structuring finances to improve eligibility
- Navigating changes like indexation and deeming updates
- Communicating with Centrelink where required
Centrelink rules are complex and constantly changing — having the right advice can help you avoid costly mistakes and maximise your retirement income.
The March 2026 Age Pension indexation is a reminder that Centrelink entitlements are not static — they change regularly based on economic conditions and your personal situation.
While the increase in payments is welcome, ensuring your details are accurate is just as important as the indexation itself.
If you’re unsure whether your Centrelink information is up to date — or whether you’re receiving the correct entitlement — it may be worth reviewing your position with a financial adviser.
If you’d like help reviewing your Age Pension entitlements or ensuring your Centrelink details are accurate, contact MLS Financial today.
Written by:
Adrian Guy – BBus (Finance & Economics), MLS Financial
Disclaimer:
This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider speaking to a qualified financial planner before making any financial decisions. MLS Financial and Infocus Securities Australia Pty Ltd do not accept responsibility for actions taken based on this