From September 20, 2025, a range of social security payments, rates, and limits will increase, 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 will be $29.70 per fortnight. Couples on the full pension will see $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 not everyone is celebrating. Older Australians took to the Starts at 60 Facebook page to share their thoughts on the increase and what life on a pension really feels like. Many feel the extra money is helpful, but not enough to make a meaningful difference when everyday costs keep rising.

Reflecting on the gap between single and couple pensions, one reader said: “I would prefer the single pension to be a bit higher… The couple pension may need to be closer to a single pension.”

Frustration over being overlooked despite years of hard work was front of mind for Kim.

“Single pensioners are doing it tough. Still have same bills as a couple yet we get a lot less. Worked hard to have a roof over our head and pay of mortgage. Yet treated badly,” she said.

Commenting on how everyday costs quickly absorb any increases, Margaret wrote: “As soon as pensioner’s get any sort of rise, the cost of everything goes up to swallow such raise.”

Electricity bills are a major concern for some, as Paul explained.

“Try paying your electricity bill $185 a fortnight not much left if anything,” he said.

For Patricia, the modest boost barely scratches the surface.

“That’s disgusting wont buy milk and bread,” she stated.

These comments paint a picture of daily life on a pension—small increases can help, but for many, the reality of covering bills, groceries, and healthcare on a fixed income remains challenging.

While the increase may provide some relief, retirees can take proactive steps to help stretch their budgets and ease financial pressure. Financial expert Chris Brycki, founder and CEO of Stockspot, suggests several ways older Australians can cut costs:

• Government – Most governments provide seniors with discounts and reduced prices for items such as transport.
• Groceries – Brycki suggests that “where possible, bulk buy things when they go on sale, especially non-perishable items like cleaning products. Also look for special savings days.”
• Utilities – some utility providers offer a discount to seniors and retirees. Shop around to find a provider that offers discounts and to ensure you are getting the best prices.
• Healthcare – again shop around to ensure you have the best health cover available. Some providers give discounts to seniors provided they have a Seniors Card or are retired.

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.