February 2025 promises to be a goads-time in the life of Australian pensioners as they await the announcement of adjustments in their pensions to help witness changes in the cost of living and changes in the economy at large. Here is an overview of the date on the types of pension increases coming in February 2025.
Age Pension Rates Indexation
Age Pension rates are indexed twice yearly for the impact of inflation and actual changes to the wage earned. Price adjustments due will first occur in February/March 2025. It is indexed against the actual movement in the Consumer Price Index (CPI), the Pensioner and Beneficiary Living Cost Index, and Male Total Average Weekly Earnings.
Pension payments are expected to rise in line with inflation and wage growth. What exactly will be the increase will be determined closer to the happening by the government. The addition of pension increases is typically between $20 to $30 per fortnight for singles and $30 to $50 for couples.
Adjustment in Deeming Rates
Administration of deeming rates on income counted toward pensions for financial investments has been frozen since 2020. But as interest rates and market conditions change, it is possible that a reassessment will take place in 2025. Increase in deeming rates will mean less pension income to those having deposits with savings and investments.
While the details are yet to be confirmed, this is some news worth thinking about for pensioners might change their income.
Increase in Superannuation Guarantee
Although not directly affecting Age Pension recipients, the SG rate will rise to 12% starting from July 1, 2025. This effectively means that over time, working Australians will accumulatively have more retirement savings. Part-time workers receiving pensions will also enjoy the benefits of increased super contributions.
Rental Assistance Increase
There may be changes to the Pension Supplement, which tackles day-to-day expenses, in February 2025 as part of the broader pension review. The Energy Supplement, which caters to the price increases in utilities for pensioners, might also see small adjustments to aid households as energy prices soar further.
Rise in Rental Assistance
As the rental cost in Australia goes up, More pressure mounts on the government to come up with Rent Assistance. So far, no major announcements on this front have been made; therefore, pensioners should closely watch any development in this area as part of the February 2025 review of pensions.
Things pensioners should do
- Stay tuned to any announcements from Services Australia about changes to pension rates.
- Assess one’s financial situation with regard to changes in possible deeming rates that will impact pension eligibility.
- Check whether eligible for further assistance programs, such as Rent Assistance and the Commonwealth Seniors Health Card.
Conclusion
So much like providing a strong cushion for any future planning, this much-waited pension increase in February 2025 should give needed relief to Australians who are in retirement. In addition, with the coming changes in Age Pension rates, possibly in deeming rates, and an increase in superannuation contributions, aged people need to stay proactive and informed regarding the provisions in their entitlements.