Modest increase as pensioners scrimp to survive

Indexation will see the Age Pension base rate increase for pensioners on 20 March 2025. The Age Pension rate increases twice a year, in March and September, to keep up with inflation using a formula set by legislation. 

The pension will increase by $4.60 a fortnight for singles and $7 a fortnight for couples. While this increase is modest, it reflects the recent easing of inflation. 

However, it’s not enough for some pensioners who face day-to-day poverty and continue to scrimp to survive. 

National Seniors Australia (NSA) chief executive officer, Chris Grice, said while the new fortnightly rate, which takes the maximum Age Pension rate to $1,149 for singles and $1,732.20 for couples combined, reflects lower inflation of 2.5%, it simply isn’t enough for those living on the poverty line. 

“Cost-of-living pressures continue to force lifestyle changes for disadvantaged pensioners. From buying powdered milk to living on credit cards and returning to work or working more,” Mr Grice said.  

“Today’s news will be disappointing for pensioners choosing between putting petrol in the car or groceries in the trolley, or those delaying dental visits or visits to the doctor. These are the everyday experiences, decisions, and realities of pensioners with limited savings. The Age Pension is clearly not enough for them. 

“Pensioners who rent struggle particularly hard. Research shows, after accounting for essentials such as food, health and transport, a single pensioner has less than $300 per week to spend on rent. NSA’s own research suggests even pensioners who own their home feel as though the Age Pension is inadequate.” 

Indexation of the Age Pension is set by legislation, so unless government chooses to revisit the method used to calculate it, we need to think about other ways to improve outcomes for pensioners.  

As part of our advocacy work, National Seniors Australia has proposed several policies to address this issue and help ease cost-of-living pressures for pensioners.  

NSA recommends:  

• Exempting employment income from the Age Pension Income test to Let Pensioners Work 

• Introducing a Pensioner Concession Card+ to provide additional concessions and supports for pensioners with limited means  

• Providing a one-off increase to the Age Pension by $10 per day for a single pensioner and $15 per day for a couples.  

“More must be done to support seniors doing it tough,” Mr Grice said.  

“It’s time government stops punishing pensioners who need and want to work and exempt employment income from the Age Pension income test. This will not only enable pensioners to better support themselves but also go a long way to help attract and retain desperately needed workers. 

“Government could also introduce a new targeted Pensioner Concession Card to provide much needed help with essentials such as energy, council rates, and medicines for low-income pensioners – some of the most vulnerable members of our community.  

“Adopting NSA’s policies will help to give pensioners a little extra cash, and a little less worry.”  

“No one, especially older Australians who have worked hard, paid taxes, and made sacrifices should struggle and scrimp to merely survive.”