Living on a fixed retirement income can mean limited spending, and sticking to a strict budget in order to meet financial requirements.
However, dealing with the increasing cost of daily living can be quite a challenge, so it’s important to obtain sound financial advice when you begin to enter your retirement years.
In order to aid the rising costs of living, the federal government announced last week (March 20) that it will be boosting the current pension for more than 3 million Australians starting from March 20 to help increase household budgets.
Maximum rates for single pensioners has increased by $35.80 per fortnight, with couples pensioners receiving an extra $54 per fortnight combined.
Those receiving veterans’ income support, Disability Pension, Age Pension or Carer Payment will be receiving an increase in pension payments.
Including the Pension Supplement and the recently introduced Clean Energy Supplement, the total dollar amount for pensions comes to $808.40 per fortnight for singles, and $1,218.80 per fortnight for couples combined.
The Clean Energy Supplement was put in place in order to cut down rising living costs affected by carbon pricing. The overall increase in living for Australian households is expected to rise by 0.7 per cent in the Consumer Price Index – with an average increase in household spending of around $9.90 per week.
To ensure its value is maintained over time, the new energy supplement will be indexed by the Consumer Price Index.
This increase in payments is great news for those on pensions, as it helps to combat the rising costs of general expenses while living on a fixed income.
Chief executive of senior advocate group Cota, Dan Yates has stated that this increase will help to make it easier for older Australians living on a pension to meet their financial requirements.
“An increase for pensioners of $35.80 a fortnight for singles and $54 for couples will take some of the pressure off older people trying to stretch their budgets to keep up with food, electricity and housing costs,” stated Mr Yates in a March 20 press release.
However, the transition to retirement can be made a lot easier by meeting with a financial adviser to determine a retirement plan to suit your requirements. In doing this, you can gain peace of mind knowing that you can live comfortably in your golden years.
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If you are about to begin the transition to retirement, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website