Indexation expected to deliver timely cost of living relief for age pensioners

Older Australians are set to benefit from major changes to Age Pension payments following the latest round of indexation, effective July 1, 2024.

While the amount of money Age Pensioners receive will remain the same, the thresholds for determining how much recipients are eligible for have undergone some adjustments.

The increases in income and asset thresholds aim to provide relief for recipients of Age Pension, Disability Support Pension, and Carer Payment allowing them to maintain higher levels of income and assets before impacting their payments.

Singles receiving the Age Pension can now earn $212 a fortnight (previously $204) while couples can now earn $372 (previously $360).

The latest round of indexation builds on a series of measures introduced in this year’s Federal Budget aimed at easing the cost of living burden, including $7.8 billion allocated for cost-of-living relief and a 10 percent increase in Rent Assistance.

Minister for Social Services Amanda Rishworth said the government was committed to helping Australians manage ongoing cost of living pressures.

“Indexation delivers timely boosts to people receiving family payments and pensions,” Rishworth said.

“These increases will provide a direct boost to fortnightly payments for families.”

The payment indexation will likely come as welcome news for retirees who are finding themselves in an increasingly challenging position, as the cost of maintaining a comfortable retirement steadily rises, placing considerable strain on household finances.

The Association of Superannuation Funds of Australia (ASFA) recently revealed that the cost of funding a comfortable retirement has increased due to a raft of higher costs, including medical expenses and insurance premiums.

According to the latest findings from ASFA, the cost of a comfortable retirement rose 0.7 per cent to hit a record high of $72,663 per year for couples, and $51,630 per year for singles in the March quarter.

ASFA CEO Mary Delahunty said that “retirees continue to feel considerable cost of living pressure on their household budgets”.

“Fortunately, in the past three months, we’ve seen the pace of price rises ease somewhat in key spending categories, namely food and fuel,” she added.

“Ongoing inflationary pressure reinforces the need for Australia’s strong superannuation system which is designed to ensure retirees can achieve a dignified lifestyle in their post-work years, and adequate retirement income to withstand these more challenging times.”

The changes to the income and asset limits can be found on the Department of Social Services website.