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The Age Pension is a critical component of many Australian retirees’ income during retirement. For the Age Pension to remain a core component of Australia’s safety net for retirees, it is important that the payment increases in line with current and future living conditions. This is the reason why each 20 March and 20 September, Age Pension Indexation occurs.
What will my Age Pension index to?
The Age Pension Indexation will increase the max rate for singles by $19.60 per fortnight, and couples by $14.70 each per fortnight. Please see the below table for the past rate, and future rate:
| Pension type | Past fortnightly max rate | Future fortnightly max rate | Change |
| Single | $1,096.70 | $1,116.30 | $19.60 |
| Couple (each) | $826.70 | $841.40 | $14.70 |
What is the Age Pension indexed by?
The Age Pension is indexed by the higher rate of change of 2 indices, either Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index. This helps to ensure that future Age Pension payments will reflect what living expenses retiree’s are experiencing.
Conclusion:
How much your Age Pension Indexation amount will be is based on your personal situation. Not every Age Pension retiree will experience the full increase, as all payments are subject to the Means Test (your Asset and Income test).
If you want to discuss any Centrelink strategies, including maximising entitlements, or what your Age Pension will change to, contact MLS Financial today through our online contact form.
Disclosures:
- This information has been compiled from sources considered to be reliable, but is not guaranteed.
