'Severely disadvantaged' single age pensioners 'barely surviving'

For six years the Australian Pensioners' and Superannuants' League of Queensland tried unsuccessfully to have the previous government address what it says is the inadequacy of the single age pension. It now hopes the new government will be more amenable to its campaign.

The league says the cost of living is way above the income of a single age pensioner, particularly those who rent.

Two years ago it petitioned the federal government to address the issue but failed to persuade parliamentarians to take up the cause, which it partly puts down to the pandemic.

Now it wants retirees and pensioners across Australia to lobby their local member of parliament.

The league wants to see the difference between the couple combined and single age pension reduced to about 20 per cent.

It says it is not financially easy for a couple living on the age pension, particularly if they have to rent in the private market, however when a partner dies, the result is not only devastating emotionally but can be financially crippling.

A couple on the age pension receives $1488.80 per fortnight including supplements. If they pay rent of (for example) $700 a fortnight, they would also receive rental assistance of $137.40, leaving them $926.20 for food, power, transport, phone and internet, water, health, clothing, maintenance and other day-to-day expenses.

If one partner dies, the surviving partner's income is slashed from $1488.80 to the single pension rate of $987.60, a cut of $501.20.

However, almost all their expenses remain the same, particularly the fixed expenses such as housing, power, car, petrol, phone and internet. Even after the single person rental assistance of $145.80, the surviving partner who rents at $700 a fortnight would have $433.40 to live on each fortnight.

The league Caloundra branch president Frank Gower said there was no cost-of-living saving to a single pensioner that justified the disparity in the two pension rates.

"Single pensioners are severely disadvantaged," he said. "Most basic living costs do not decrease when a pensioner ceases to be part of a couple.

"A single pensioner does not save $501.20 fortnightly on their major bills, food, power, water, and general cost of living."

Mr Gower said many older single pensioners have never received superannuation, and relied on their pension as a sole source of income. "There are single age pensioners living in poverty, many are barely surviving, and it's time the government did something to help them."

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As inflation continues to surge, pensioners are keenly awaiting news of the half-yearly welfare payment increase, due September 20.

The Pensioners and Beneficiaries Living Cost Index showed a 3.5 per cent increase from January 1 to June 30. The Consumer Price Index increased by 4 per cent.

According to the Combined Pensioners and Superannuants Association, the CPI increase will be used in September as Centrelink bases its pension indexation on whichever is higher, the pensioners and beneficiaries index or Consumer Price Index.

The current single age pension is $900.80 plus $72.70 pension supplement and $14.10 energy supplement. The pension supplement is CPI indexed; the energy supplement is not indexed.

In the past year food has gone up by 5.9 per cent, housing by 9 per cent and transport by 13.1 per cent.