Age Pension set to increase, but financial strain on older Australians remains

Millions of older Australians receiving the Age Pension will see their payments increased later this month, with the latest round of indexation set to take effect.

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.

Both rates include Pension Supplement and Energy Supplement.

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.”

The increase comes after questions have been raised about whether the Age Pension is enough to cover basic living costs, with a recent report finding that more retirees are experiencing financial stress and struggling to meet even basic needs.

This alarming trend came to light in the latest Cost of Living Longer Report 2024, commissioned by Australian Seniors in partnership with research group MyMavins.

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.

“Since the onset of COVID-19, nearly every aspect of daily life — groceries, utilities, fuel, council rates — has seen substantial price increases, leaving little to no room for essentials such as medical care or social engagement.

“Some are unable to afford heating during winter, while others rely on Meals on Wheels for affordable, balanced meals. Urgent action is needed to address this issue —either through a reduction in living costs or an increase in the aged pension— to ensure older Australians are treated with the respect and care they deserve, rather than being left behind.”

-with AAP.