Age pension increase slammed as inadequate for struggling pensioners

Millions of older Australians receiving the age pension will see their payments increase this month, with the latest round of indexation set to take effect. However, advocates are arguing the increase isn’t enough for those already struggling to make ends meet.

From March 20, the maximum single rate of pension for those on the Age Pension, Disability Support Pension and Carer Payment will increase by $4.60 to $1149.00 a fortnight.

For couples, the maximum rate of pension will increase by $7 a fortnight to $866.10 a fortnight for each member of a pensioner couple or to $1732.20 for a couple combined.

Minister for Social Services Amanda Rishworth, said the upcoming increase “will help ease some pressure” for pensioners.

“We’ve spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life,” Rishworth said.

“Indexation is a critical part of our social security safety net. For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”

While Rishworth believes the increase will ease pressure on older Australians, National Seniors Australia (NSA) argues it isn’t enough to lift pensioners out of poverty, with NSA CEO Chris Grice stressing that the increase will not be sufficient for those already fighting to stay afloat.

“Cost-of-living pressures continue to force major living changes for some pensioners from buying powdered milk to living on credit and having to return to work or work more,” Grice said.

“While the government has done good work to make healthcare more affordable with PBS medicines capped for five years, today’s news will be disheartening for pensioners choosing between putting petrol in the car or groceries in the trolley, delaying dental visits or visits to the doctor. These are the everyday decisions and realities of pensioners with limited savings. The Age Pension is clearly not enough.

“Pensioners who rent struggle particularly hard. Research shows, after accounting for essentials such as food, health, and transport, a single pensioner has less than $300 per week to spend on rent. NSA’s own research suggests even pensioners who own their home feel as though the Age Pension is inadequate.

“More must be done to support seniors doing it tough.”

The dire financial situation facing those relying on the age pension came to light in the latest Cost of Living Longer Report 2024, commissioned by Australian Seniors in partnership with research group MyMavins.

The report revealed that more retirees are experiencing financial stress and struggling to meet even basic needs.

The study surveyed over 1,000 Australians aged 50 and above, revealing the impact of inflation and rising costs on those relying on the age pension.

Alarmingly, the study found that nearly three in five (58 per cent) are facing moderate to severe financial challenges due to rising costs, with one in 10 (10 per cent) experiencing severe difficulties.

With the cost of living continuing to climb, seven in 10 (69 per cent) now fear that the age pension alone will not be enough to live on.

The financial strain has left nearly three in five (59 per cent) struggling to pay for essentials such as utilities and groceries.

Even more concerning, one in five (20 per cent) have delayed or forgone medical treatment due to costs, placing their health at risk.

Understandably, these difficulties are taking an emotional toll, with around two in five (43 per cent) reporting a decline in their quality of life over the past two years. For 21 per cent, this decline has been considerable or severe.

Carolyn McColl, President of the Board for Meals on Wheels NSW, expressed deep concern over the findings, calling for urgent action.

“The aged pension is no longer sufficient to meet basic living expenses, with rising costs forcing many elderly Australians to make significant sacrifices,” McColl said.