Raise pensions quarterly say advocates

And while it's undoubtedly welcome, it's only just covering historic cost of living rises which took place from June to December last year; rises which crippled already stretched budgets and left many elderly Australians cutting back on food, medications, medical appointments, heating, cooling and other essentials.

The retrospective increase, driven by an inflation rate of 7.8 per cent, during the relevant period, also does not take into account price rises from the beginning of January, prompting advocates to call for more frequent indexation increases during periods of extreme inflation.

How often the pension is indexed is as important as how much, according to National Seniors Australia.

Pensioners would rightly worry there won't be another rise in payment until September, said chief advocate Ian Henschke. "They'll have to wait six months and then play catch-up again."

Both National Seniors and Combined Pensioners and Superannuants Association are calling on the government to index social security payments every three months.

CPSA's Paul Versteege said the indexed increase compensates pensioners for cost-of-living increases between July and December last year. "The increases will start to be paid on March 20, almost nine months after the start of the indexation period and three months after the end of it. Meanwhile, people on just the pension have had to deal with a significant loss in their pension's purchasing power."

National Seniors has included a proposal to index the pension four times a year in its up-coming federal budget submission.

"National Seniors Australia recognises our system adjusts for rising cost of living, but it is critical during times of high inflation that we adjust four times a year instead of two," Mr Henschke said. "For pensioners struggling to cover necessities such as food, fuel and electricity, how often is as important as how much."

Age pensioners are among more than 4.7 million pension and allowance recipients who will receive a boost to their social security payments from March 20.

The single age pension will rise to $1064 including supplements as the regular six monthly indexation is applied. The fortnightly couple pension will increase by $28.20 to $802.00 per person ($1604 couple combined).

Disability support pensioners and carer payment recipients can also expect the same increase.

Announcing the increase, Social Services Minister Amanda Rishworth, said the government was doing what it could to support Australians in need.

"Australia's social security system exists to support our most vulnerable citizens, and we know they are feeling the pinch," Ms Rishworth said.

In September, single age pensions went up by $38.90 per fortnight; couples $29.40 each.

JobSeeker Payment and adult ABSTUDY payment rates will also be indexed on March 20 with single recipients aged over 22 and without children receiving $701.90 per fortnight inclusive of the energy supplement, an increase of $24.70.

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CPSA is also calling for the government to take a serious look at the Rent Allowance. "which is out of sync in a big way with actual rents," said Mr Versteege.

Rental assistance will go up by $5.60 to $157.20 p/f for a single person no children, up $5.20 to $148 for a couple no children and up $3.73 to $104.80 for a single person sharer, no children.

Council on the Ageing (COTA) Australia said while welcome, the age pension increase fell short of properly addressing the financial pressures faced by older people. "It's certainly not going to solve all of our problems at once," chief executive Patricia Sparrow said.

"The age pension is designed to ensure that no older Australian lives in poverty and with things like rent skyrocketing over and above CPI, small increases to the pension simply aren't enough for many people," said Ms Sparrow.

Asset and income disqualifiying limits also change with the March indexation. The age pension will cut out when assets reach $634,750 for a single homeowner, $859,250 for a non home owner (increase $12,500); couple combined homeowner $954,000, non homeowner $1,178,000 (increase $19,000).

The family home is not included in asset calculations.

Income disqualifying limits increase by $75 per fortnight for a single person to $2318, and by $112.80 per fortnight to $3544 for a couple combined.

More details on the Department of Social Security website