Increases to the Australian Age Pension
Wednesday, October 02, 2024
Age Pension rates are adjusted twice a year, in March and September, to help retirees keep up with the rising cost of living. These regular increases assist Age Pensioners in maintaining purchasing power and standard of living.
The Australian Age Pension has recently seen an increase, bringing welcome additional income to many retirees across the country. From September 20, 2024, the maximum full Age Pension will rise by $28.10 per fortnight for single pensioners and $21.20 per person per fortnight for couples.
This boost means that single pensioners can now receive up to $1,144.40 per fortnight, while couples can get a combined $1,725.20 per fortnight.
Why and How Often Do Pension Increases Occur?
Age Pension rates are adjusted twice a year, in March and September, to help retirees keep up with the rising cost of living. These regular increases assist Age Pensioners in maintaining purchasing power and standard of living.
The Australian government uses a calculation method to determine these increases, taking into account various economic factors:
Consumer Price Index (CPI)
Pensioner and Beneficiary Living Cost Index (PBLCI)
Male Total Average Weekly Earnings
The highest of these three measures is used to adjust the pension rates.
How to Claim the Increase
The good news is that if you're already receiving the Age Pension, you don't need to do anything to get the increase. Services Australia will automatically adjust your payments.
However, if you're not yet receiving the Age Pension but think you might be eligible, you should:
Check your eligibility using online tools provided by Services Australia or with your Financial Advisor.
Self-funded Retiree Eligibility
The recent pension increases apply to all eligible pensioners, including self-funded retirees who qualify for a partial pension.
However, these automatic bi-annual increases do not take into account any changes to your personal circumstances such as your asset changes up or down, or perhaps market shifts.
For example, many self-funded retirees who begin retirement ineligible for the pension may become eligible later as they draw down on their investments, or if qualification thresholds rise. In addition, if the markets are not performing as they have when you applied for Age Pension, this could change your income/asset assessment by Centrelink and thereby change your qualification as to how much part-Pension you may receive.
Self-funded retirees should periodically check their eligibility, as their status may change over time. Even a small partial pension can give you access to valuable concessions and benefits.
Consult your Financial Planner
Understanding potential pension eligibility can help with better planning of your retirement investments. Maher Digby Securities are specialists in retirement planning and can assist with this aspect of retirement income strategies.
Self-funded retirees shouldn't assume they're ineligible for the Age Pension. It's worth staying informed about the eligibility criteria and recent increases, as you may qualify for at least a part-pension and its associated benefits.
For more Information contact Mark Digby at Maher Digby Securities Pty Ltd - Financial Advisers – AFSL No. 230559. This document was prepared without taking into account any person’s particular objectives, financial situation or needs. It is not guaranteed as accurate or complete and should not be relied upon as such. Maher Digby Securities does not accept any responsibility for the opinions, comments, forward looking statements, and analysis contained in this document, all of which are intended to be of a general nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend consulting a financial advisor.