Age pensions not keeping up with inflation
National Seniors Australia is worried that the surging inflation figures are further proof that increases in the age pension are failing to keep pace with inflation.
In the lead-up to next month’s Budget, the latest increase will add more weight to the growing chorus of calls for a pension increase. National Seniors chief executive, Michael O’Neill, said.
“While the March quarter CPI increase of 1.3% was of real concern, the increases in the cost of basic commodities, including food and power, have been much larger than the headline rate.
“The CPI figures show food prices rising by 2.1%, with bread up by 4%. Electricity is up 6%, health costs have risen by 4% and the cost of medicines has leapt a massive 13%: all basic items that pensioners and low-income self-funded retirees are already struggling to afford.
“Age pensioners spend more than 21% of their income on food, and another 7% on health. Yet the most recent indexed pension increase, which was applied just last month, raised the pension by just 1.7%.”
Mr O’Neill said by the time the next increase in September, pensioners will have been paying these higher prices for more than six months, without any assistance.
“This is clear evidence that there is an urgent need for an increase in the base rate of the pension.”
