For many older Australians, the Age Pension is their main source of income. But as costs rise, more and more are finding it difficult to make ends meet and maintain a sense of financial security.

Recent research shows nearly three in five retirees are facing moderate to severe financial challenges, with many struggling to pay for essentials like groceries, utilities, and healthcare, according to the Cost of Living Longer Report 2024, commissioned by Australian Seniors in partnership with research group MyMavins.

Some relief is on the way, with the Age Pension set to increase from September 20, 2025. More than 2.6 million pensioners will see a boost, with singles receiving an extra $29.70 a fortnight and couples $22.40 each. While welcome, many older Australians say the rise is quickly swallowed by bills and everyday costs, leaving little breathing room.

This mix of pressures — rising costs and the emotional toll of living on fixed incomes — makes long-term planning feel even harder. But Carrie-Ann McLean, author of Budget Right: Eliminate debt and improve your financial and mental wellbeing says there are practical steps older Australians can take to ease financial stress and build confidence about the future.

“Long-term financial security starts with clarity, consistency, and small safeguards,” McLean says.

To put this into practice, McLean suggests several practical steps:

• Create a budget that’s realistic and flexible – One that accounts for rising costs, occasional medical expenses and seasonal changes (like higher energy use in winter).
• Build an emergency buffer – Even $10 per fortnight can go a long way toward easing unexpected expenses over time.
• Avoid high-interest debt – If debt is a concern, seek help early. Free services like the National Debt Helpline can offer support and strategies without judgment.
• Stay informed – Knowledge is power. ASIC’s Moneysmart website offers trusted guidance, and your local council may run free finance and wellbeing workshops for seniors.

Long-term financial security matters, but making the most of every dollar in the short term can help ease day-to-day money stress.

McLean says older Australians can take simple, immediate steps to get more from their age pension.

“Every dollar counts right now and a few immediate actions can make a big difference,” McLean explains.

A few of her top tips include:

• Track where your money is going – Use a simple notebook or free app to see what’s really being spent weekly. Awareness leads to better decisions.
• Align spending with your pension cycle – Plan expenses around payment dates to avoid late fees and reduce the temptation for impulse purchases.
• Review recurring bills – Energy, phone and insurance providers often have better deals for long-time customers, but you have to ask for them. Don’t hesitate to negotiate.
• Use concessions to your advantage – Pensioner discounts can cut transport, utility and prescription costs significantly. Many people are eligible but don’t know it.

While those on the Age Pension may struggle to keep up with rising costs, small, consistent actions can help older Australians feel more in control of their finances and their future.

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.