The federal government is open to discussing proposed aged pension changes with the opposition and minor parties.
But Labor says it won't support any initiatives that would send millions of Australians below the poverty line.
The coalition will reportedly water down its plan to index pension payments to inflation from July 2017.
Instead it would be adjusted over time to prevent the income of older Australians sinking too far below those of ordinary workers.
The original reform would see the value of the pension slump from 28 per cent of average weekly earnings today to just 16 per cent by 2055.
Social Services Minister Scott Morrison says the pension could be tied to inflation until the budget returns to surplus.
"Right now it's a matter of talking through with the crossbenchers the best way which we can have a sustainable management of the pension over time," he told the ABC on Saturday.
"I think if we're going to make changes we've got to start making them now.
"You can make them more gently if you do it over a long period of time."
The government remains committed to altering the pension but is prepared to discuss the issue, Treasurer Joe Hockey says.
"We want to do everything we can but we also need to get back to the point where we live within our means," he told reporters in Sydney.
Opposition families and payments spokeswoman Jenny Macklin says cuts to the pension won't be supported by Labor and the budget plan should be dumped altogether.
"Labor will oppose any move to cut the indexation of the pension," she said in Melbourne.
"We want to make sure the pension is kept up with the general standard of living of Australians and the best way to do that is to link the pension to the total male average weekly earnings."
Superannuation is the best way to ensure a sustainable retirement pension scheme, she said.
She also rejected an idea floated by Mr Hockey for first homebuyers to draw on their superannuation to buy their first home, saying it would push up the price of housing.
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