Australia’s Centrelink Age Pension is set for a considerable increase this year, which will bring much-needed support for retirees and seniors throughout the nation. This action is part of the government’s continuous attempts to enable older Australians to sustain a reasonable living standard while coping with increasing living expenses. The rise in pension payment is expected to mitigate the impact of inflation while providing greater financial security to pensioners.
Reasons for Age Pension Increase
Inflation and the cost of living essentials, including housing, utilities, and groceries, have been inflating the pressure on retirement incomes for a prolonged period of time. In response, the government attempts to address this with a pension indexation policy which will either use wage growth or inflation, whichever is greater. This policy ensures that pensioners do not suffer with fixed incomes without pension payment adjustments, and aids seniors with inflation and wage growth.
What Will the New Age Pension Rates Be?
Depending on the receipt type, either as a single or a couple, the figures are expected to increase fortnightly payments for the pension. Single pensioners can expect a $15 to $20 increase, while a couple can expect to see $30 to $40 increase. These are just examples however, and the figure could be higher or lower. This does show however, that the government is taking actionable steps to provide help to aged pensioners.
Who is eligible for the increased pension?
Like with many policies put in place in Australia, there is a strict guideline that has to be followed, and in this case, a person has to be a certain age, a citizen, and have a certain income level to be eligible for age pension. The increase in pension is a policy that applies to everyone regardless if they qualify the policy as long as they are already on the government stipulated pension or are newly eligible. The primary impact is on seniors aged 66 and older, with the age for eligibility steadily increasing in the next few years.
How to Prepare and What to Expect
Those in receipt of pensions do not have to take any additional steps to receive upcoming payments – the increase will reflect automatically. It is, however, good practice to look over your financial situation because the additional payment may alter eligibility for other government payments or healthcare services. Keeping track of the most current Centrelink news can enable retirees to strategize and optimize the benefits provided.
