It’s that time of year again when we receive clearer signals about the magnitude of Age Pension indexation scheduled for 20 March.
The good news is that, even though the Consumer Price Index (CPI) has eased off somewhat, there will still be an increase in the Age Pension base rate and main supplement. This will be based upon a CPI increase of 1.8% which was higher than the increase in the Pensioner and Beneficiaries Living Cost Index (PBLCI) which was confirmed recently to have risen by 1.5% over the past six months.
The what, you might ask? Here’s a quick recap on how Services Australia uses different economic indicators to measure price and wage increases and then apply this movement to keep Age Pensioners ‘in touch’ with the working population. This indexation takes place twice a year, on 20 March and 20 September.
