Age pension rise: how much more money is going to retirees

The age pension and other government payments are scheduled to increase next month. Here’s what to expect.

A looming rise in the age pension won’t be enough to offset many seniors’ higher living costs.

A looming rise in the age pension won’t be enough to offset many seniors’ higher living costs, as retirees also battle scammers promising fake Centrelink bonuses and dodgy investments.

From September 20, the maximum fortnightly rate of age pensions, disability support pensions and carer payments is expected to increase by $28.10 for a single and $42.40 for a couple combined.

Calculations by the Combined Pensioners and Superannuants Association (CPSA) show the maximum pensions will be $1144.40 per fortnight for a single – about $29,754 per year – and $1725.20 for a couple combined, or $44,855 annually.

Pensions are indexed twice-yearly based on the Consumer Price Index and Pensioner and Beneficiary Living Cost Index, whichever is higher. CPSA says in the past six months CPI rose 2 per cent but the PBLCI increased 2.6 per cent, with its main annual contributors including insurance, food, transport, alcohol and tobacco.

Final pension indexation figures are expected to be released by the federal government in the coming days, but previous CPSA projections have been accurate within a few cents.

CPSA policy manager Ash Fowler said surging insurance and energy costs were the biggest cost-of-living concerns for seniors right now.

Their insurance costs have climbed almost 18 per cent in the past year, government data shows, and the outlook is glum, with the nation’s biggest insurance companies last week warning of 5-9 per cent rises in premiums this year.

“We are hearing from people who have had home and contents insurance their entire life and suddenly they can’t afford it anymore,” Ms Fowler said.

“Of course, every dollar of extra pension counts, but because there has been such a sharp increase in expenses, the twice-yearly indexation isn’t keeping up,” she said.

“People living on a pension don’t have the means to be saving or building a financial buffer. We are seeing people really, struggling.”

CPSA is also warning pensioners to be wary of ongoing Centrelink Bonus scams based on Covid-era bonuses that no longer exist.

Ms Fowler said CPSA had been receiving emails and calls from people as word of mouth spread hope about a new bonus.

“Scammers have picked up on this and have made fake websites,” she said.

“They got access to a ‘.org.au’ domain, were impersonating a defunct charity and were spouting nonsense.”

Services Australia says the scams offering “Centrelink Relief Payment” or “bonus payment” are promising various amounts, including $750 and $1800.

“These payments don’t exist,” it says. “The only genuine Services Australia and myGov websites are servicesaustralia.gov.au and my.gov.au.”

Later Life Advice founder Brendan Ryan said some seniors were also being urged by product promoters to start self-managed super funds and invest in NDIS-related property investments that were clearly not suitable for them.

About 2.6 million Australians receive an age pension, and Mr Ryan said others could receive it – and the related benefits and discounts – if they checked.

“We always find people who should be eligible for the pension and are not, or have never applied for the pension,” he said.

“If you are not eligible, understand why, and every time the rates change check in and be vigilant.”

Rising inflation had pushed up pension eligibility thresholds, so people who were ineligible a few years ago could now receive some money, Mr Ryan said.

Originally published as Age pension rise: how much more money is going to retirees