MORE than 3.7 million age pensioners will have extra change in their pockets each fortnight after the September indexation increase rolls out this week.
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Single pensioners will receive $6.80, or $176.80 each year, while couples will receive an extra $10.20 a fortnight or $265.20 a year.
The increases bring the maximum age pension to $867 a fortnight for singles and $1307 for couples combined, and will roll out from September 20.
The energy supplement of $14.10 per fortnight for singles and $21.20 for couples will be retained.
The pension has increased by $58.60 per fortnight for singles and $88.20 per fortnight for couples under the current Federal Government.
Adjustments are made in March and September based on the higher of the pensioner and beneficiary living cost index and the consumer price index.
The result is then compared with the male total average weekly earnings benchmark, which is used to adjust pensions if it would lead to a higher increase.
Pension increases in 2014 and 2015 have been driven by the consumer price index.
Rent assistance and other supplementary payments have also increased.
From January 2017 the assets test limit to receive the full age pension will increase to $375,000, however for people with assets above that threshold their pension will be reduced by $3 per fortnight for every extra $1000 in assets, up from the current taper rate of $1.50.
For those who are not eligible for the Age Pension, the indexation of income limits for the Commonwealth Seniors Health Card from September 20 means more people may qualify for its benefits.
The new cut-offs are $52,273 for singles, $83,636 for couples combined and $104,546 for couples separated by illness.
