Age Pensions up 5.1%pa

The March 20 increases in Age Pensions were announced this week. The Single Person Age Pension rises to $13,652pa and the Married Couple total combined pension rises to $22,802pa. These pensions are 5.1% higher than a year ago. Pensions are increased twice a year in March and September. We have now updated Age Pension data in Research Centre for Data Series Graphing and also in the Pension Calculator.

The basis of increase is now complex being the higher of CPI and Wages increases. With a delay factor involved and some volatility in quarterly Wages and CPI increases, we now have the unusual observation that the 5.1%pa pension increase is just under 2% higher than both of the latest annual increases in Wages (3.2%) and Prices (3.3%) to December quarter 2006. If this basis was operating in the wild inflation of the 1970's, we would have seen age pension increase at 15%pa over 7 years to March 1977 when prices had increased at 10%pa. And by the way, the stock market had fallen by 4.6%pa over the same 7 years - it was tough times for self funded retirees!

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