8th Jan 2013

Planned Age Pension increases

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Debbie McTaggart

YOURLifeChoices member Dick is sure his Age Pension is due to increase soon, but doesn’t know when or by how much.

Q. Dick

Are old age pensions rising shortly? I’m sure I read somewhere that we are due an increase.

A. The good news is that yes, Age Pension will be increasing, but you’ll have to wait until March to receive the new payment rate.

Pensions are indexed twice a year, March and September, to the higher of the increase in the Pensioner and Beneficiary Living Cost Index and the increase in the Consumer Price Index. View the current rate of Age Pension and the increase implemented in September 2012.

In addition to indexation, the implementation of the Clean Energy Supplement will take place from 20 March 2013. This is an annual amount of $338 for singles ($13 per fortnight) or $255 for each individual member of a couple ($9.80). If you prefer, you can opt to have this amount paid quarterly rather than fortnightly. The Clean Energy Supplement will also be indexed.

To find out more about the Clean Energy Supplement, read YOURLifeChoices article, Carbon Tax: what’s in it for pensioners.

 

 





COMMENTS

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Nan Norma
8th Jan 2013
5:37pm
Before the the latest interest rate cuts I was able to make a little above the deeming rate but thats impossible now. Term deposits pay less.
Nan Norma
18th Feb 2013
4:29pm
I had news since I wrote the above. deeming will decreaseon the 20th March to 3% and 4%
goldseeker
16th Mar 2013
11:17pm
Have a really good look around. On line accounts give better interest than everyday bank accounts.
Wendy HK
8th Jan 2013
8:38pm
Interest rates - depends on where you are with your finances.
If they rise the home buyers are unhappy and if they fall the self funded retirees are unhappy.
We aren't happy.
Nan Norma
8th Jan 2013
9:06pm
Well its not much fun when the government tells you you're earning more then you are, and decreases you pension. Plus we have inflation.
gary38
8th Jan 2013
9:15pm
Totally agree with the above. The deeming rates should be revised downwards immediately.
pollwild
9th Jan 2013
8:39am
DEEMING RATES... it is really terrible how high they are... should have gone down long ago.
Nan Norma
9th Jan 2013
9:21am
And if your income is asset tested even Centrelink knows your actally losing money.
$1000 4.50% earns $40.50 a year or 77c a week.. Centrelink takes $39. But then we have inflation so you don't even get $40.50. And you can only get that in a term deposit.
alamoe417
9th Jan 2013
10:28am
We get an increase, woweeee, bu the electric, gas and water, plus other bills are getting higher and higher. I think the PM and all the Politicians should take a pay CUT, none of them earn the amount of money they are paid. Plus all the perks, super, cars, expenses etc.
Nan Norma
9th Jan 2013
10:43am
They are just GREEDY, GREEDY,GREEDY. The amount of money some of them get is tatally obscene.
bronzey
16th Mar 2013
7:06pm
Mr.Garotted requires our teachers to lift their game .My question is will politicians lift their game and what educational qualifications does the minister for education have ?
goldseeker
16th Mar 2013
11:22pm
Have to agree whole heartedly. All pollies got a massive Pay Rise Mar/Apr 2012 then with effect 01 Jul 2012 got a further 3% rise. I am a pensioner through DVA and all I got was a miserable $0.63 cents/fn rise, which equivilates to a 0.1% rise. Wheres the equality on that one. Am I only worth 1/30th of a Politician when I went overseas to South Vietnam for three tours of duty at the whim of these so in so's. I put my life on the line for 21 years and all I get is a 0.1% rise. What and where did the pollies put thier life on the line?
unicorn
9th Jan 2013
2:18pm
Yes they are greedy like our local council is not only have they doubled the price they charge us for water they no longer give us our pensioners discount om water rates. So in effect are actually making more profit.
goldseeker
16th Mar 2013
11:23pm
Our local water company charges us something like $60.00 per year for greening Victoria. WQhy when we are getting plenty of rain now?
marron
10th Jan 2013
11:48pm
I agree that Deeming Rates are daylight robbery, if you own a small rental unit in a country town, where you can only get a low amount of rent for it......they Deem it on major City prices that can be hundreds of dollars more than rural rents......this is so wrong, how can they possibly say that this is fair.
Nan Norma
10th Jan 2013
11:53pm
They have a set of rules for us and a set for them. They don't know what's fair.
Grateful
11th Jan 2013
12:27pm
The sooner pople realize that pensions are BENEFITS for the NEEDY and not God given ENTITLEMENTS, the better.

Try deeming what is left before the next pension payment is due!!!!
Nan Norma
11th Jan 2013
12:42pm
age pensions are entitements for people who tax all their life.
bronzey
18th Feb 2013
3:36pm
Time for seniors to stop moaning and take action ,"senior's" we are and we have worked all our lives ,paid tax all our lives and made this country what it is. Why do senior couples earn less pension than a single senior? and we don't discriminate !!! This Labor Party is the most financially inept gov. of our time and as senior citizens we must protest and demand a decent increase to enjoy life and not accept the pittance Gillard @ Swan dish out
Nan Norma
18th Feb 2013
3:58pm
Good news also, the deeming rate will change to decrease from 3.5% to 3% and from 4.50% to 4% but it only help a little, provided the interest rates don't go down again.
unicorn
18th Feb 2013
4:09pm
deeming rates as far as banks are concerned re just an excuse to pay us practically no interest on our hard earned money. Ha. As I said I would need about $1,000,000 on deposit to enable me to earn $10 per month interest. And as everybody knows that is an impossibility.
Nan Norma
18th Feb 2013
4:26pm
Centrelink sets the deeming rate. I'm sure the banks make a nice profit from it.. You don't have to put your money in a deeming rated account. You can make a little extra by finding an higher interest rate else where: other bank accounts, term deposits, shares etc. It is the asset tested poeple who are losing money. Every $1000 takes 75c a week of the pension. Even the cash in value of a life insurance policy which you are paying for.
goldseeker
16th Mar 2013
11:26pm
Easy fixed, remove your money from the Big banks and invest on line. You gain, banks lose, problem fixed.
sensible senior
24th Feb 2013
9:01pm
Gee i am a single pensioner and i will receive $6.90 per fortnight increase my funeral insurance has gone up to $30 per fortnight and i am led to believe that electricity is going up by 23% so food will go uptoo perhaps they wantg to kill us seniors off. The politicans dont care if they get back in especially J. Gillard they gave themselves a hughe increase so she wont have to woory about where her next dollar is coming from.
goldseeker
16th Mar 2013
11:14pm
Don't forget to have your say at the federal Election later on this year. it is about time we pensioners voted all the same and get rid of the labour Party permanently.
brainstraina
11th Mar 2013
6:59pm
Nothing against Tony Abbot; but of course I noticed the meat on his bbq - shown on "60 Minutes" last night 10/03/13. My favorite meat being lamb cutlets @ a cost of approx $43per kg.
The steak also was the best available. I wish for 2 of those cutlets per week.
I'd like to comment on those few who say they 'live well' on the Age Pension and that others must be living 'beyond their means'. Firstly, I am reclusive and live alone, venturing out only when necessary. I'm never hungry. My home requires constant maintenance of some sort as do the fences and garden. I have a hairdresser come to my home 3 times a year and yes! I purchase some cosmetic products. These are my 'luxuries'. I don't spend on social outings. I have a small dog and a cat with whom I would not be without.
Residing in a small country town for the past 40+ years the job prospects were not great and I took whatever was available. At retirement 6 years ago my wages for the previous year had - if I may use the word 'increased' - to $11.30 per hr. I had given service to this Co. for quite some years and held a very responsible position. Super was paid only for the last two years of my employment. To the person suggesting that I'm living beyond my means - I would like details of how to live so comfortably his/her way.(A tin of paint costs around $100.) The supermarket is a 20 min. drive. The car with it's maintenance and fuel costs is a necessity. I would like for that very clever person to tell me how to do it more economically. There are many differing circumstances my dear!
Nan Norma
11th Mar 2013
8:16pm
I believe it is mainly the pensioners paying rent or still paying a mortgage that are struggling. My husband was/is a DIY person although it's getting harder for him to come to terms with the fact he's going to have to start paying for labour. I was repaired clothes etc. The main thing I think is that we never went into debt, other than our house. I do realize that things happen that are sometimes beyond peoples control.
unicorn
12th Mar 2013
11:21am
It's all very well to say Centrelink sets the deeming rate. ut who uses their heads & how much would one need invested to earn $1000
have done the sums & let me tell you that Centrelink have not. No way I could ever have enough invested to earn $1000 per annum
unicorn
12th Mar 2013
11:23am
Natural;y Tony would eat meat don't men eat meat & he for sure likes to be seen as a big tough man. Who needs it? Not me. I am not even lucky enough to be able to chew meat, on the lousy dental scheme, which is just a rip off.
goldseeker
16th Mar 2013
2:34pm
I have bween a pensioner since Sep 2001. As a result I have chased the higher interest I can for my spare cash. It would appear as if a lot those that have posted comments above , have not looked about for better interest rates. For some time now I have been directing my spare cash into Online Banking. Companies that are presently holding my monies are the Commonwealth Bank in a Goal Saver account, ING Direct with an introductory offer of 5% for the first four months of deposit, and last but not least, RaboDirect. Rabo were the best for a while but have since reduced their interest rates for no apparent reason. All of these pay more than the Deeming rates. I trust that most of those that have posted here do have a computer so whats holding you up? Im am glad that the Commonwealth Government have reduced the Deeming Rates from 3.5 to 3% and 4.5 to 4%. That means more monies in my pocket from the pension payments and I still don't have to pay tax on the earnings. All I can is this: Move out of fixed term deposits as you are losing money hands over fist. Go on line and get higher interest rates that way. Further, your funds are NOT LOCKED UP for the duration of the period. Interest is generally earned every day and credited at the end of the month. People, get away from the banks. Go On Line. I have been an on line inverstor now for about three years and never lost a cent in fraudlent transactions. Stop feeding the banks your profits. Yes by all means keep a samll amount of cash in an every day account for house expenses etc, but the rest, go online. Another way to save money is to ditch/get ris of all the credit cards in your purse/wallet and go for a DEBIT CARD only. Buy goods, pay with your debit card and bingo, the money comes out of your bank account almost immediately. This is better that using a credit caerd, getting a bill at the end of the month and find that you have spent more than what you received. Work with a budget and stick to it. The light at the end of the tunnel will slowly start to shine brighter.


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