Boost for older Australians with Age Pension payments set to rise

Older Australians will see an increase in their income support payments starting September 20, 2024, thanks to the latest round of indexation.

This adjustment will benefit various payments, including the Age Pension, Carer Payment, and Commonwealth Rent Assistance.

For Age Pensioners, the boost will amount to an additional $28.10 per fortnight for singles and $42.40 per fortnight for couples combined.

The same increase applies to the Disability Support Pension and Carer Payment, bringing the total to $1,114.40 per fortnight for singles and $862.60 per member of a couple, including the energy supplement.

Additionally, as announced in the 2024/25 Budget, the maximum rates of Commonwealth Rent Assistance will rise by 10 per cent, with indexation applied on the same day.

Minister for Social Services Amanda Rishworth said the government is firmly committed to delivering greater assistance to Australians facing cost of living challenges and the upcoming increases will ensure that “vulnerable cohorts have more money in their pockets for everyday expenses”.

“This Government recognises that many Australians continue to be directly affected by cost of living pressures,” Rishworth said.

“Indexation, together with our Budget measures, means maximum rates of Commonwealth Rent Assistance will have increased by around 45 per cent since the Albanese Government was elected.

“This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.”

The upcoming rise in payments will hopefully offer some relief to retirees who are now having to spend more to achieve a comfortable retirement given the rising costs of essential goods and services.

According to the Association of Superannuation Funds of Australia (ASFA), the cost of maintaining a comfortable retirement has increased by 3.7 per cent over the last 12 months due to rising home and vehicle insurance premiums, along with higher private health insurance costs.

As a result of these financial pressures, retired couples now need $73,337 per year to enjoy a comfortable lifestyle, while singles require $52,085.

ASFA CEO, Mary Delahunty, explained that “retirees are managing an increasingly difficult landscape where the costs of essential goods and services keep rising”.

“Health, home, and transport are vital to their well-being, yet the expenses tied to these necessities are steadily increasing,” she noted.