Pensions up 3.8%

The Age Pension increses on 20 September to $244.45 per week for a Single person and $204.10 per week for a married person. This is an increase of 3.8% on the rates 1 year prior. The government's move in 1997 to index to both CPI and 25% of MTAWE has kept the pension increases ahead of price inflation but not quite up with wages. Over the past 8 years CPI has increased by 2.6%pa and Wages by 4.7%pa while the age pension has increased by 4.0%pa.

FinDem has calculated the value of the age pension paid from age 65 to be $272,337 for a man, $282,666 for a woman and $465,097 for a married couple. These calculations are based on current average inflation (2.4%pa over the last 10 years), current 10 year bonds yields (5.06%pa) and life expectancy allowing for continued improvement in mortality (30.46 years for a male and 32.25 years for a female).

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