Under mounting pressure from seniors groups the Federal Government has moved to cut the Deeming Rate used to decide how much pension a retiree is entitled to.

Savings over $51,800 will now be deemed to earn 3 per cent, while savings under that figure will be deemed to earn 1 per cent.

Nationals Seniors has been driving the campaign for change and chief advocate Ian Henschke tells Mark the government still needs to pass the decision making on the rate from politicians to an independent authority.

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