Yesterday’s announcement of an increase to the age pension is a welcome relief. But the system needs to be adapted to ensure pensioners are better able to cope with inflation.

From 20 March 2023 the maximum rate of the single age pension will rise by $37.50 per fortnight (taking the single age pension from $1026.50 to $1064) and for couples, by $56.40 per fortnight (taking their payment from $1547.60 to $1604 combined).

Luke Grants is joined by Ian Henschke, Chief Advocate for National Seniors Australia, who says under the current system, pensions are adjusted every six months, in March and September but this leaves recipients playing a costly game of catch up when inflation is unusually high.

“The Federal Government should index the pension every three months during times of high inflation to help those most vulnerable,” says Mr Henschke.

Download this podcast here