Age pension recipients set to receive more cash in their pockets with payments set to rise

Amid the challenges of a cost of living crisis, there is some positive news for older Australians as the Age Pension is poised for an increase.

Scheduled to take effect later this month, indexation will provide additional financial support to recipients of Age Pension, Disability Support Pension, and Carer Payment.

From March 20, recipients of such payments will receive an increase of $19.60 a fortnight for singles and $29.40 a fortnight for couples combined.

When accounting for the Pension Supplement and Energy Supplement, the maximum Age Pension rate will increase to $1,116.30 per fortnight for singles and $1,682.80 per fortnight for couples.

Minister for Social Services Amanda Rishworth said the increase in payments is aimed at easing the cost of living pressures and helping those who need it most.

“Our number one priority is addressing inflation and cost of living pressures. These challenges highlight the importance of regular indexation to ensure that payment recipients have more money in their pockets for everyday expenses,” Rishworth said.

“Pension recipients are some of the most vulnerable members of our communities, many having worked all their lives contributing to our society or caring for a loved one.

“This regular indexation is in addition to our boost to working age and student payments announced in last year’s Budget. This increase, which took effect on 20 September 2023, also included the largest increase to maximum rates of Commonwealth Rent Assistance in 30 years.”

The upcoming rise in payments will hopefully offer some relief to the six in 10 seniors who have reported that the cost of living is placing an enormous strain on their budget.

These staggering findings were revealed in COTA’s State of the Older Nation (SOTON) 2023 report which surveyed the experiences and views of 2,750 Australians aged 50, with the findings painting somewhat of a grim picture for older Australians.

The recent report found that a striking 45 per cent believe that their situation is worse, a significant rise from 2021 (33 per cent) and 2019 (27 per cent).

You can find out what payments and services you are entitled to via the Department of Social Services website.