The price of groceries, soaring electricity bills, rising rent — for millions of older Australians, these are the everyday realities making retirement a financial balancing act. So when news came that the Age Pension would rise in September, some welcomed the boost, while many said it still falls short.
On September 20, 2025, a range of social security payments, rates, and limits increased, bringing extra money to the bank accounts of more than 5 million Australians—including over 2.6 million Age Pensioners.
For those receiving the full single rate of Age Pension, Disability Support Pension, or Carer Payment, the boost was $29.70 per fortnight. Couples on the full pension received an extra $22.40 each per fortnight.
Minister for Social Services Tanya Plibersek said the increase is designed to help Australians manage everyday costs.
“Thanks to indexation, millions of Aussies will receive a boost to their payment to help them cover everyday costs like groceries and healthcare. The government wants to help take the pressure off when it comes to cost of living,” she said.
But for many older Australians, the sentiment is clear: while every dollar counts, the increase barely scratches the surface of the mounting financial pressures retirees face.
On the Starts at 60 Facebook page, readers didn’t hold back in sharing their feelings about the increase.
“Absolute insult. Mine will go towards electricity bill that has skyrocketed,” Jill said.
Others highlighted how rent and everyday living costs were outpacing any pension adjustment.
“Our Rent went up $40 per week last year and $30 per week this year. We have no hope of keeping pace with inflation, food price rises, insurance rises etc,” said Sharolynn.
Even those without rent or mortgage stress said they were struggling to make ends meet.
“I at least don’t have a mortgage to pay, live very frugally.. have solar on ( so that helps with power bills).. and yet still find myself dipping my meagre savings every fortnight just to survive,” explained Debra.
Others argued that payments simply aren’t keeping pace with real-world expenses.
“It needs to go up to match rising costs, like rent rises and much more. It’s a sad world we live in, especially when we have such thoughtless and greedy politicians,” Lyn said.
Some readers believe the issue isn’t just the amount but how often payments are adjusted.
“The way the cost of everything going up, the pension needs to be adjusted every quarter not twice a year.”
For many, the numbers just don’t add up. Kate laid out her situation in stark detail:
“After I pay mortgage, medical fund, car insurance, house insurance, funeral fund, budget for council rates, water rates, and electricity I will have the grand sum of $32.85 a fortnight to buy food and basic necessities. NO it still doesn’t go far enough.”
While the increase will provide some financial relief, the reaction from older Australians underscores a wider issue: cost-of-living pressures are rising far faster than pension adjustments.
Amid the frustration, financial experts say there are still ways to stretch the extra dollars further.
Carrie-Ann McLean, author of Budget Right: Eliminate debt and improve your financial and mental wellbeing, says the first step is gaining clarity on spending.
“Take a few minutes to write down your regular bills, living costs and little extras like the coffee or lotto ticket,” she says.
“Once you can see where your dollars are flowing, you’ll be in a stronger position to decide how best to use that pension increase. Clarity gives you choice and choice reduces stress.”
McLean explains that “balance is key” and suggests using her Budget Right framework:
“My Budget Right framework is 70/10/10/10,” she explains.
The latest increase may not go as far as many hoped, but with careful planning and a clear view of where money is going, every dollar can still be stretched that little bit further
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