As the golden years roll in, managing finances becomes a crucial aspect of life for many Australians. For those relying on government support, such as the Age Pension, the prospect of an increase offers a glimmer of hope amid the ever-rising tide of living costs. The official figure won’t be known until it is announced in early March, but if estimates hold, Age Pensioners and other beneficiaries could see a much-needed boost to their fortnightly payments from 20 March—a change designed to help them keep pace with inflation.
The process of indexing payments is a biannual event, occurring in March and September, and is a critical mechanism to ensure that pension payments reflect the current economic climate. The indexing takes into account the higher of two inflation measures: the Consumer Price Index (CPI) and the Pensioner and Beneficiary Living Cost Index (PBLCI). Additionally, if the calculated amount falls below a certain proportion of average wages, it is further increased to maintain a fair standard of living for pensioners.
With the latest wages data released by the Australian Bureau of Statistics, the National Seniors Australia (NSA) has crunched the numbers and estimated what the pension increase might look like. It’s important to note that the actual calculation is a complex affair, involving a series of steps and different rules for the various components of the Age Pension. The official figures will be announced in early March, but for now, the estimates suggest that the maximum Age Pension rate per fortnight could be $1,148.10 for single pensioners and $1,732.20 for couples combined.
Remember, these figures represent the maximum amounts. Means testing will adjust individual payments based on personal financial circumstances.
If the NSA’s estimates hold true, single pensioners would see a rise of $3.70 per fortnight, while couples could enjoy a $7 increase. While any increase is welcome, these figures are modest compared to the September 2024 increases of $28.10 for singles and $42.40 for couples. This disparity reflects a significant reduction in inflation, indicating that the price of everyday goods and services is not climbing as steeply as before.
Despite the adjustment for inflation, many pensioners may feel underwhelmed by the projected increase. NSA has voiced that the government can do more to support pensioners, as outlined in their recent Federal Budget submission.
The NSA’s research indicates that older Australians believe the Age Pension falls short of providing for a basic standard of living. Survey participants estimated that an additional $10,000 for singles or $15,000 for couples per year would be necessary to meet basic living standards. Consequently, the NSA is advocating for a one-off increase to the base rate of the Age Pension of $10/day for a single pensioner and $15/day for a couple pensioner.
Moreover, the NSA suggests freezing deeming rates while interest rates are high and establishing a fair, transparent method for calculating deeming rates in the future. This would benefit pensioners with limited means by providing additional concessions and support.
The workforce shortage is another area where pensioners could make a significant impact. Government policies currently discourage pensioners from working by penalising their earnings. The NSA recommends exempting employment income from the Age Pension income test to encourage more older Australians to remain in the workforce.
Housing is another critical issue for pensioners. The NSA proposes that excess proceeds from the sale of a principal home be exempt from the Age Pension means test for Home Care Package recipients over 80, facilitating downsizing into age-friendly homes. Additionally, removing disincentives for renting out rooms, such as impacts on pension entitlements and Capital Gains Tax liabilities, could provide financial relief.
Lastly, the NSA calls for increased Age Pension gifting limits to support charitable giving, first home deposits, and the retirement of Higher Education Loan Program (HELP) debt. This would involve raising gifting limits and indexing them to inflation. With an average inflation rate of 2.6%, the overall gifting limit for a single pensioner should be no less than $17,500. Considering the difference in the assets test between singles and couples, the annual gifting limit for a couple should be set at $26,500.
As the cost of living continues to challenge many pensioners, these proposed changes highlight the ongoing discussion about how best to support older Australians. While the upcoming pension increase offers some relief, many argue that more needs to be done to ensure a comfortable and secure retirement.
What are your thoughts on the upcoming pension boost? Do you believe it goes far enough, or should additional support measures be introduced? How would changes to gifting limits, deeming rates, or income rules impact you or someone you know? Share your thoughts in the comments below—we’d love to hear from you!
Also read: Private health insurance premiums climb: 3.73% hike kicks in this April
well that would be nice, my paper just up by 50 cents , on saturday , so lost 50 cents before we get it cant even buy a small serve of hot chips , but the they all have spent pen .
A $3.70 increase for singles. 0.32%. Pathetic
Think of Military Pensions and the fact they get taxed and people that have never served their country whine and carry on when single rate and bonuses go to pensioners who live to pension age and get bonuses. How about you ask the Labor Party about why they tax military pensions and dont give bonuses to military pensions but to people who just qualify just for reaching pension age and dont get taxed on their pensions. Strange that isnt it.
The pension was originally bought in years ago as a right fòr working and paying taxes for 50 or more yearrs. Part of our taxes was supposed to go towards our pension.
So, while we may not have served our country in battle, we bloody earned the right to a pension in our old age.
If tax has to be paid on a military pension it is because the military pension rate must take you over the tax free threshold.
The Age pension is taxed.
It’s only taxed if you earn money from work, or have lots of money in shares, bonds, etc, and get high returns. My Age Pension is certainly not taxed, as the only other income I receive is less than $10 pa in interest from my bank account. I don’t have any super nor own a home.
What bonuses? I’m on the singe Age Pension & I certainly don’t get any bonuses, and so far never have. The only extra I’ve received was the same as all others on pensions/allowances during the COVID period, but since then, absolutely NOTHING!
I still have to pay rent, food, fuel, phone, internet (I’m on the lowest rates out there),insurances – car, contents, CTP, health & funeral, then there’s servicing for the car. My phone & health insurance go up on 1/4/25, and that’ll take up all the increase, so I’ll start off behind the 8-ball when it comes to food & petrol, so I’m not going to be any better off. The only saving grace will be the possible increase in rent assistance.
And where am I supposed to spend this paltry amount of $3.70 per fortnight?
My phone bill has just gone up by $5 per month, and health insurance by 30c per fortnight, not to forget that if I decide to renew my lease in August, I can expect to pay an extra $10-20 PER WEEK! I’d be going backwards at a great rate of knots.
The Age Pension alone is certainly not geared for the rising costs of living, and they certainly don’t take into account the ever-rising costs of insurance, fuel, or even food!
There needs to be a more equitable way of calculating these increases, and not have them retrospective to 3 months earlier!
There’s a second benchmark that’s not brought into play here, and it’s the benchmark against the Total Average Weekly Male Earnings, usually published in November. Using this benchmark, the increase would be at least 4.6% higher than what it is now – and that’s $1197.05 for singles, giving us an increase of $52.65 per fortnight. The legislation indicates that the higher amount should be what is used.
It costs more than $3.50 to switch the stove on. It is not ok for the pollies who get $200,000 a year to not stand up for the pensioners and the down and out. I would like them to live on pensioner’s money for a couple of months as they would then get an idea of the struggles we face.
$200,000 ? That’s the minimum. Try $250 – $400,000. Most polititions have investment properties. One of the reasosn they don’t care about house prices and rents going though the roof due to increased immigration. It’s not rocket science.
I don’t think our great leaders would settle for this pathetic rise. This will be swallowed up by Health Insurance rises and not to mention Household Insurances. Car insurances etc.
Thanks Sleazy and you Labor pathetic party
$3.70 a fortnight ( that’s $1.85 week) …. I can’t even buy a loaf of bread or a litre of milk a week for that, let alone pay the increase in electricity, rent, insurance, fuel, basic fruit & veg or any meat, let alone go out for a coffee.
The official figures will be announced in early March, but for now, the estimates suggest that the maximum Age Pension rate per fortnight could be $1,148.10 for single pensioners and $1,732.20 for couples combined……… being single doesn’t mean everything costs less than a couple. Rent is the same, electricity is the same, house insurance & car insurance is the same, fuel is the same, food is only a small amount cheaper for 1 as it is for 2…. but their combined pension is $600 a fortnight more. It doesn’t cost a couple $600 a fortnight more to live than a single. I’m not begrudging couples the money, just saying the single pension should reflect that these expenses are the same as for a couple..
And… gifting…. why can couples give $26,000 a year & singles only $17,000, when we have the same amount of kids, grandkids etc. If I won lotto or something , $17,000 wouldn’t go far …
We are a couple but i get what you’re saying. Costs are about the same for a lot of things
The pension should be the same for everyone. A person’s living arrangements should not affect their payment nor should the income of anyone else such as their partner.
We are all individuals leading our own lives with our own expenses and should be treated as such. This couples live cheaper is crap. Couples can combine some expenses, but it does not mean they do.
Another gripe I have is rent assistance which is really a subsidy for greedy landlords like most of our politicians who own rental properties. Rent assistance pushes rents up.
I think a better choice of word could have been used for couples could “enjoy” a $7.00 increase. That won’t even buy us a cup of coffee each, not that we can afford to go out to get one.
They are taking the p..s aren’t they? Here, have an interest rate cut, oh wait, insurance increase, we’ll take that thank you very much. Have a $3.70 raise in your payment, oh wait, here’s some increases in other charges, we’ll take that thank you.
These people cannot be serious.
The problem is they are serious. Let’s hope common sense prevails before the increase is announced.
My house insurance went up over 50%. $3.70 a fortnight won’t go anywhere near that.
Ruth – absolutely agree! I am sitting here in the aftermath of Cyclone Alfred, was without power for over 36 hours, and still getting hammered by rain and wind. Part of my fence ripped out, and a sliding glass door frame is pouring in water. Plus a large freezer of meat and fish will have to be thrown out as it all defrosted. Yes – I have home insurance – BUT dread putting in a claim. First I know they will deny it (as they do with so many), then it’s trying to find a tradie, then my next year premium will go through the roof! My last home insurance premium renewal wanted an increase of 56% – I have NEVER EVER made a claim, in over 50 years of home insurance. I shopped around – the best I could get was an increase of 35%. Wow! That $3.70 per f/n a will REALLY cover the $16.00 per f/n insurance increase! And that is merely ONE example!
Anyone who thinks inflation is going down, or steadying out, is delusional.
i understand your hurt very much.
Adding to my previous comment,….
n the past year alone, the average home insurance premium has surged by a staggering 16 per cent, equating to an additional $359 on average.
Yep… $96.20 a year ($3.70 fn) will cover that…. NOT!!!
Not sure where $3.70 comes from. A 0.4% increase to base rate and supplement is actually $4.50. A pitiful increase which ever way you look at it when pensioners are doing it tougher than anyone else
the current cost of living according to someones statistics is %3.2
i can assure everyone one thats a lie if you take everything into consideration
THE WAY THE GOVT WORKS OUT YOUR COST OF LIVING IS A JOKE
WHY DO EVERYONE RECEIVE A LOWER COST OF LIVING RATHER THAN THE TRUE COST OF LIVING
PENSIONERS HAVE BEEN RIPPED OFF FOR SO LONG THAT THE PENSION IS ABOUT AT LEAST $250 a fortnight short
IF POLITICIANS GET A $20 thousand dollar increase for doing nothing then what should pensioners be entitled to after working 60 plus years NOT TO MENTION THEY ARE GIVING CONCESSIONS TO THEMSELVES FOR ELETRICITY THE SAME AMMOUNT AS PENSIONERS
I have contacted at least 6 govt departments to look into a suspicious death and every dept passed the buck to another dept and not one of them got off their arse to look into IT
WHAT DO THESE GOVT DEPTS DO DO EARN A WAGE OTHER THAN REWARD THEMSELVES AND DISREGARD PENSIONERS AS A JOKE
NOTHING
Age Pensioners are and will always be going backwards with regards to Income. We have had to fund the Cost of Living Increases for the past 6 Months, and then get a Paltry rise in Income, but NO Compensation for the losses of the Past 6 Months !!
A couple have possible both been working for their whole life, both have paid their Taxes etcetera, but when it comes to the Age Pension, they are Penalised by receiving less than a Single Pension each. This is why there are many Couples separate / divorce after attaining Pension Age, so that they then receive teh Single Age Pension, and can then have a better chance of surviving.
My late partner worked her own business for the majority of her life, paid her share of taxes etc. ans was totally financially independent, but when she retired, she did not qualify for a Pension because I “earned too much”, and then she became totally dependent on me, which to her, was a total slap in the face. Working hard, paying taxes then get absolutely nothing when retiring !!!
What a joke. Obviously Albo does not think the pensioner vote is relevant to his re-election ambition. Think again Albo.
Unfortunately it does not really matter which Party is in Government. it will remain the same, until the method for setting the Base Rate for the Pension is brought up to date so that a person can actually LIVE on reasonably on only the Pension !!
I saw yesterday on Centrelink website, that Albo promised pensioners $750 one off payment in February 2025 to help with cost of living. I haven’t seen it yet, has anyone ?
No!!!! If he thinks empty promises will excite us pensioners into voting for him… he’s got a lot more thinking to do.
But hey…. he doesn’t care. His massive pension & perks still will be his to enjoy on us. You GO Albo!!! And I mean that literally.
Be careful, lots of fake websites purportedly acting as Centrelink reporting various one off payments but nothing official and I would think it highly unlikely as such payments will see a spike to inflation and then the country back where it started, so don’t believe them
No Albo didn’t. You have been conned by a fake website.
And Dutton is even worse. Neither deserves our vote.
It’s false information most likely put out by LNP supporters to discredit the ALP.
Did you check the authenticity of the report, obviously not
The aged pension increases, they have to be a joke, aren’t they?
In short – bloody insulting! 👎😖
Perhaps if the prime minister would forgo the 100 million dollars to fix the road leading to his 4 million dollar mansion there might be something left for other peopie doing it tough. Congratulations to the labor party you have lost a lifelong voter.
That’s it albo. Stick it where the sun don’t shine. That amount won’t cover the cost of fuel I’ll need to go and vote for you., or anyone else for that matter.( Not that I would.)
New Zealand has a Universal Pension, no income test or asset test.
I paid taxes in NZ from 1962, age 15, till 1995, a total of 33 years and retired age 65 years and because I dont live in NZ or OZ they will not pay me a pension if I live outside of those countries after 26 weeks. Where is the fairness in that Mr NZ
We need a Universal pension. No assets or income tests, the pension is simply added to taxable income and taxed in the normal way.
New Zealand has had one for yonks – the NZ Superannuation. So why not Australia?
Saves on endless time and money wasted on compliance investigations, saves a fortune on time spent waiting on hold.
AND most importantly, allows pensioners to work unpenalised. The doom-speak about the “burden” of older Australians is silly. We need to let pensioners work as much as they want, given the alleged future shortage of employees. Already, an increasing percentage over 65s are working in any event.
Let’s build on that. No coercion to work: simply allowing pensioners the freedom to engage in paid work if they wish. Not to do so is a flagrant breach of citizens’ rights.
That would massively increase the available workforce, an obvious plus for Australia’s economy.
We are no longer in the Steam Age: working options are much more sophisticated these days. Working from Home is one obvious example,as well as flexible hours, part-time work, locum work, or an on-call reserve labour force.
That sounds too much like common sense
$3.70 a fortnight, $1.80 A WEEK! This is an insult.
I get more money cashing in drink bottles of the street 🤪 🤣🤣
And while pensioners become poorer and poorer, the government continues to build windmills all over the place at $20million a piece to achieve absolutely nothing. What a joke. Vote these idiots out.
Lets build more Nuclure submarines that will solve the problem.
Peter R:
Most of these so called “Windmills” are being Built by Private, Commercial Entities, NOT the Government !!
Also, do you want the Massive Cost of maybe getting Nuclear Power Stations built, maybe in your backyard !!
$3.70 RISE PER FORTNIGHT A SUBSTANTIAL RISE !!WHAT DIFFERENCE IS$3.70 going to make you can’t even buy a 2 litre bottle of milk with that seriously might as well give us O because $3.70 isn’t going to help pensioners one iotta
The last paltry increase was $3.60 per fortnight in SEPTEMBER 2016!!!
So now we have the official numbers $4.60 a fortnight more for singles $7.00 more for a COUPLE. OK so this is the amount due to indexation but it still pretty pathetic and does anyone really believe that costs have only gone up 0.4% in the July to Dec period?
$4.50 a fan 🤣. My home insurance went up $400 this year even with no claims. Car insurance up $200. Land rates $200. Don’t have home internet or any paid tv channels. Mobile phone plan up $2 a month, now costs $32. We all know the pain of utility bills forever rising. I tried a winter without heating and now have asthma. Damage to lungs from inland frost, chest pains so bad I thought I was having a heart attack. Doctor gave me a lecture on the importance of temperature control as we age. I was rugged up but the air was so frosty breathing in. Maybe I could try a muzzle. Then food costs 😭 another pain we all share. Living on cheaper carbs like bread and pasta from the home brand range. No fruit and very limited vegetables. Of course I began to feel ill so doctor ordered blood tests. No surprises there. Diagnosis of NAFLD from a diet high in carbs and no protein. I don’t drink or smoke ever. So…. Mr cheap skate government, now I’ll be costing you a lot more money being treated in the Medicare system. I have no private health insurance as can’t afford it on the pension we receive. I am still paying off my home loan so interest rates have been hard for me. Can’t afford home repairs so watching the decay set in and feeling totally overwhelmed. My family have all passed before me so now I have no- one to depend on. Only leave the house to see doctor, for medical reasons, or a once a week shop. Haven’t had a social life since covid as cannot afford it. Have also cut back on instant coffee to one teaspoon / cup a day at home. I’m just waiting for some smart arse to insult me some more. Voting is not too far away and my emotional pain is great, so who do I give my precious vote to ? IMHO , both major parties don’t give a 💩💩💩💩or they would have fixed this mess a long time ago. Time to vote for another smaller party. Ideas anyone !
It is a disgrace Brian, and I truly feel sorry for you. As I said in my post above yours, does anyone truly believe that CPI only went up 0.4% in the July to Dec six mths (PBLCI only rose 0.2% which makes even less sense).
OK so this is indexation but the numbers are manipulated by both sides of politics to give the lowest acceptable increase. $4.60 will do very little for those struggling (let alone 80cents extra rent assistance). Disgusting
I cannot believe that the Gov. think a $7 a fortnight rise is going to make a “critical” difference. It’s despicable when all the fat cats get a wage rise yearly and more than they deserve. Do they think we are all senile, stupid plebs that are going to be so happy with such a pitiful amount? It’s disgusting when you read so much news about seniors going to be helped with the cost of living and this will bring us into line with inflation, unbelievable! All the unions that go on strike, protest about getting a raise in
wages and they are usually substantial amounts that actually help. It’s about time that Centrelink minded their own business, let aged pensioners work for extra cash without being penalised and have the tax dept. sort it all out at the end of the financial year.
We are fast becoming a third world country.