Pensioners Struggle as Cost of Living Rises Despite Centrelink Increase

Australian pensioners are finding it increasingly difficult to afford basic necessities, with many saying the March 2025 Centrelink pension increase will not be enough to counter rising living costs. With food, rent, energy, and healthcare prices climbing rapidly, seniors fear that the latest pension boost won’t keep up with inflation.

New Pension Increase in March 2025 – But Is It Enough?

From 20 March 2025, Centrelink will increase the Age Pension, but the rise is significantly smaller than previous adjustments:

• $4.52 more per fortnight for singles
• $6.82 more per fortnight for couples

This brings the annual pension to:

• $29,857 for singles
• $44,962 for couples

The increase is meant to help pensioners cope with inflation, but many believe it falls far short of real living costs. Compared to the September 2024 increase, which provided $28.10 more per fortnight for singles and $42.40 for couples, the latest adjustment feels insufficient.

Margaret Lawson, a 74-year-old pensioner from Sydney, says she has been forced to change her shopping habits as prices continue to climb.

“Even basic groceries are getting out of reach. I used to buy fresh meat every week, but now I have to cut back. Even with this pension increase, it’s not enough to make a real difference,” she said.

Cost of Living Crisis: What Pensioners Are Struggling With

Despite the government’s pension adjustments, rising expenses are eating away at payments, leaving many unable to afford essentials.

• Food Prices: Groceries have jumped by 7.5% in 2023, with meat and seafood seeing some of the biggest price hikes (ABS data).
• Rent Costs: Many pensioners who rent are struggling, with some reporting $200+ weekly rent increases in the past decade (Adelaide Now).
• Home Insurance: Costs have surged by nearly 18% in the past year, making it harder for seniors to maintain coverage (ACCC).
• Energy Bills: Many older Australians are reducing heating and cooling usage to cut costs, as electricity prices remain high.
• Healthcare & Medications: While PBS prescription costs are frozen until January 2026, many pensioners still struggle with medical expenses, particularly specialist visits and private health insurance premiums.

Lester, a 60-year-old cancer survivor from Grange, has faced severe financial stress due to rent increases and energy bills.

“I’m one rent rise away from real trouble. Every extra dollar counts, but it’s not enough,” he said.

Government Support: What Help Is Available?

To assist pensioners, the government offers some financial relief, including:

• Pensioner Concession Card – Discounts on medications, utilities, and public transport.
• Energy Bill Relief – Rebates available to low-income pensioners.
• Rental Assistance – Extra financial support for pensioners facing rent hikes.

However, many seniors argue that these supports don’t go far enough, with advocacy groups demanding bigger pension increases.

Advocacy Groups Demand Fairer Pension Adjustments

National Seniors Australia and Seniors Advocacy Australia are calling for pension increases to be tied to real cost-of-living changes, arguing that the current adjustments don’t reflect actual expenses.

David Grant, a spokesperson for Seniors Advocacy Australia, says the system needs urgent reform.

“Pension adjustments must reflect real-world costs, not outdated calculations. Seniors are falling behind, and the government needs to act,” he said.

These groups are pushing for:
Stronger pension indexation tied to real inflation data
More targeted subsidies for essential goods and services
Increased rental assistance for pensioners struggling with housing costs

Will Future Pension Increases Keep Up?

With the March 2025 increase providing only a few extra dollars, many pensioners feel abandoned by the system. While the government claims that adjustments are based on inflation, seniors argue that real costs are rising much faster than pension payments.

Will the government increase pensions further to match inflation?
Or will older Australians continue to struggle with an unaffordable cost of living?

For now, pensioners like Margaret Lawson and Lester will have to make do with what they have, hoping for more meaningful support in future adjustments.