Social security deeming rates, used to determine individual pension levels, will drop next week.
On 4 November, the deeming rates will decrease to 2 per cent from 2.5 per cent for financial investments up to $46,600 for single pensioners and $77,400 for pensioner couples. For balances over these amounts, the upper deeming rate will decrease to 3.5 per cent from 4 per cent.
National Seniors chief executive Michael O’Neill said the drop would provide a little extra cash to those older Australians managing on fixed incomes.
The drop is the second this year, after four years of no movement despite a run of official interest rate cuts.