In Australia, the Disability Support Pension (DSP) and the Age Pension are two of the most important welfare payments delivered by Centrelink. Both provide crucial financial assistance to individuals who are unable to fully support themselves.
While the DSP is designed for people with a permanent physical, intellectual, or psychiatric condition that prevents them from working, the Age Pension is primarily for older Australians who have reached the qualifying age.
As of August 2025, both pensions remain at the centre of national conversations on affordability, cost-of-living support, and fairness in eligibility rules. Many Australians who are nearing retirement, or who are already on the DSP, want to know the differences between these payments and whether one may be more beneficial than the other.
Who Qualifies for Each Pension?
Eligibility rules differ significantly between the two. The DSP is assessed on medical and work capacity grounds, while the Age Pension is assessed only on age and residency, with income and asset limits applying to both.
| Criteria | Disability Support Pension (DSP) | Age Pension |
|---|---|---|
| Eligibility Age | 16 years and over, below Age Pension age | From 67 years (by 1 July 2023) |
| Health Condition Requirement | Must have a permanent medical condition that prevents work (assessed under impairment tables) | No health condition requirement |
| Residency | Must generally be an Australian resident for at least 10 years | Must generally be an Australian resident for at least 10 years |
| Means Test | Income and assets test apply | Income and assets test apply |
| Payment Rates (Single, as of Aug 2025) | Around $1,020.60 per fortnight | Around $1,020.60 per fortnight |
| Payment Rates (Couple combined, as of Aug 2025) | Around $1,538.60 per fortnight | Around $1,538.60 per fortnight |
Payment Rates in August 2025
Currently, both the DSP and the Age Pension are aligned in terms of payment rates. This means eligible singles can receive just over $1,020 per fortnight, while couples can receive around $1,538 combined. These rates are adjusted twice a year, in March and September, to reflect inflation and changes in living costs.
The alignment in payment amounts means that the main differences between the two pensions come down to eligibility criteria, not the actual money received. For many, the transition from DSP to the Age Pension at retirement age happens seamlessly, with no loss of income.
Transition from DSP to Age Pension
A key update for August 2025 is the increasing awareness around the transition point between the DSP and the Age Pension. When a DSP recipient reaches the qualifying age, they are moved across to the Age Pension system. This is automatic in most cases, ensuring there is no gap in payments.
The move also comes with some advantages. For example, Age Pension recipients may have different access to certain concessions and support services, and there is no ongoing medical review requirement as there is for the DSP.
Which Pension Is Better in 2025?
Since the payment rates are now aligned, the decision between DSP and Age Pension is less about money and more about eligibility and long-term conditions. Younger Australians who cannot work due to disability rely heavily on the DSP, while older Australians who have reached retirement age find the Age Pension a more straightforward and stable form of support.
For those approaching pension age, it is important to prepare in advance by ensuring their financial and residency records are up to date with Centrelink.
The Broader Context: Cost-of-Living Pressures
Both pensions continue to be central to discussions about cost-of-living relief. With electricity prices, food costs, and rent still high in 2025, advocacy groups are calling for a substantial increase in both pensions to ensure vulnerable Australians do not fall behind. While the government has provided one-off support payments in recent years, many seniors and people with disabilities argue that permanent pension increases are necessary.