While the coalition is sticking to the pledge to do nothing this term, big changes are planned from 2017.
Treasurer Joe Hockey insists the government is not cutting pension payments.
They're just not going to increase as quickly as they do now.
"We are being up front with the Australian people," he told reporters in Canberra on Tuesday.
Most of the changes save the government very little money over the budget's forward estimates, but budget documents make it clear the changes are about long-term sustainability.
From late-2017 the indexed increases to the age pension will be linked to the consumer price index instead of the highest rate available, generally male average earnings.
With inflation running at about 2.5 per cent pensioners will find their payments increasing by less than they're been used to in recent times.
At a similar time in 2017 indexation of the income and assets test will be frozen for three years, meaning the amount people can have before getting the pension will drop in real terms.
And the deeming thresholds for returns from financial assets will drop to $30,000 for single pensioners and $50,000 for couples.
As previously flagged by Mr Hockey, eligibility for the age pension will increase to 70 years by July 2035.
But Commonwealth seniors health card holders will feel an immediate hit when the seniors supplement is cut this September.
The payment is worth more than $800 a year for singles and $1300 for couples.
Dumping it will save the government $1.1 billion over five years.
However, the qualifying income threshold for the health card will now be indexed at the CPI rate each year.
The government says this should let an extra 27,000 people qualify in the next four years.
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