Age Pension indexation changes dropped by Government

Assistant Treasurer Josh Frydenberg has confirmed the Government will drop the changes to Age Pension indexation announced in the 2014/15 Federal Budget.

So how is the Age Pension indexed, and what were the announced changes?

Age Pension Indexation

Indexing the Age Pension is a multi-step process, involving three numbers:

  • CPI: Consumer Price Index
  • PBLCI: Pensioner and Beneficiary Living Cost Index
  • MTAWE: Male Total Average Weekly Earnings

The Age Pension is currently indexed twice a year, on 20 March and 20 September. In short the Age Pension is indexed to the higher of the change in the CPI or the PBLCI, and then compared to the MTAWE. Read more...

COTA foresees “dystopian future” for pensioners

COTA, age pension indexation, dystopian futureThe Council of the Aging of Australia (COTA) says that projecting forward under Government age pension policy shows an “unacceptable, dystopian future” for pensioners, with “escalating degrees of poverty not seen since the Depression era.”

COTA is calling on the Government to withdraw the Bill which would change the indexation of the age pension and implement an “everything to be on the table” Retirement Income Review.

Age pension indexation should be taken to election: National Seniors

Age pension indexation, CPI, National SeniorsNational Seniors Australia says the Government policy of indexing the Age Pension to only CPI is a “cynical exercise,” calling on the proposal to be taken to an election.

“A change to indexation will drive pension levels down to the meagre levels of the unemployment benefit,” said National Seniors chief executive Michael O’Neill.