How pensions will change in March
Last week’s October Consumer Price Index (CPI) surprised many. The overall year-on-year (YOY) increase of 6.9% was lower than expected, and lower than the September YOY increase of 7.3%.
The main movements were in the categories of food, housing, rent, transport and holidays.
Food prices continue to increase, they are now up 8.9% for for the year for the year to October.
Most retirees are not affected by increasing building and construction costs (new dwellings), which is a relief as they are up 20.4% for the year to October.
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James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
I believe spending will as usual rise over Xmas period but by next Feb many people will realise the debt they are in and spending will fall into February onwards and with it inflation will start downwards. I am glad I do not have a mortgage or rent to pay though!
I am having trouble with our everyday house hold bills and grocery items and I think we should get a rise of at least $40 extra per fortnight.
I have a mortgage and might have to sell my home. My husband of 45 years passed 12 months ago from cancer and our home has many memories. I would like to downsize but when I am ready, not because I have too. With all the rate increases I am having trouble living without stress.
Using the CPI increase is making sure that Age Pensioners supposedly keep up with cost of living. This does not work within Australia and with the new Government so focused on reducing emissions the cost of living has risen greater as electricity prices, gas prices and fuel increases have taken more than a 3.9% pension increase will achieve.
Maybe if the savings of $275.00 was passed on now it might help.
Personally, I see no logic in Australia becoming the leader in emission reductions when we produce around 1% of the world’s total.
Government regulation and investment in the Australian renewable energy market increases private investment in construction, jobs and taxes. For more information read Ross Garnauts book “Superpower” (Australians low carbon opportunity). The Australian economy once road on the sheeps back, now minerals and hopefully a world leader in the renewable energy market, regardless of the degree of our own emissions.
$27.17 a fortnight is a joke.
I think that $ 40 rise may be reasonable to catch up with the grocery price increases and the extra charges on all the the electricity/ Has & water bills rises plus the fuel cost and medication bills might help manage or it should be at least around 75% of the normal wage to be considered .
Increase in pensions are based on the CPI , not Inflation, which is higher the the CPI, therefore pensioners are losing ground!!!
I am a new Pensioner after many years of illness, finally. But after Rent, running a vehicle, Rego, services, fuel, food, electricity, gas and no entertainment one wonders are we being killed off slowly (tongue in cheek) . $27.17 equates to $13.58 per week, which is a magazine and coffee (all your entertainment for the fortnight}. Take Inflation into the equation and one meal a day and hopefully we wont be here in five years. What a life.
My wife and I live on the age pension, plus the carers pension for me. We pay almost $ 500 a fortnight on our mortgage.
Until the last 6 months we could live comfortably on that, and even build a small reserve We are non drinkers, non smokers, and don’t get out much, which helps a lot. We have solar power and batteries but, because of my wife’s medical needs our winter bill is still around $1000. We make use of every concession etc., available to us.
In the last 6 months, increased expenses have begun to eat into our reserve . The fortnightly mortgage payment has gone up $50 for a start, and basic foodstuffs are getting very expensive.
We should survive, and if interest rates eventually go down we might even get ahead again. Until then, opportunity shops, community swap carts, and community gardens help us manage.
We feel lucky to live in Australia, with what is really a very good social welfare system for the elderly.
The aged pension is so terribly under funded. It is a wonder that people survive.!!
We conributed to our country’s development but little has been given back by a uncaring government.!!!!
still trying to work out why fuel is so expensive, when the price of a barrel of oil has dropped, and why diesel ( the sludge) is dearer than unleaded?
The increase in the pension every 6 months is only a gap plugger. We are, and alway will be, well below the poverty line, unless the government increases our pension to where we can catch up and start living what life we still have left without worrying about where our next meal will come from. Or how we will pay the next electricity or gas bill, put fuel in our cars, pay council and water rates. Pay for home and contents insurance, and keep clothes on our back. We need at least an extra $100 per fortnight for couples and $120 for singles to plug the gap and to be able to gain an even keel and keep above inflation.
Idon’t know how the juggle the CPI but most of my costs have gone up by 50 to 100%
$ 100 rise fortnightly should be about right . And $ 140 will be more sufficient to manage for the next 6 months.or should consider 75 to 80 % of the living wage might be more realistic to catch up as we pay taxes on every item we purchase and should be given Free Car Registration or a 37 % discount on Fuel cost. to make life a bit easier to manage.
The inequities for pensioners are stark. I paid tax for 40+ years but now I cannot afford to service and maintain an essential vehicle or carry out any regular maintenance on my home. Not even tins of paint. Health, food, insurances, rates and energy expenses cannot be met now. I am 76 and my wife’s carer following a stroke. I am therefore unable to top up with the extra income from a part time job that some can. That is an unfair disparity. The age pension falls short by $10,000 per year for a modest but reasonable life-style. Pensioners are not significant contributors to inflation. The discretionary spend of the wealthy and greedy corporations are the cause.