Pension up $2.68 a day. What can that even pay for?
- Replies 34
In a recent article, we discussed the reactions of SDC members to the pension indexation news, a ‘whopping’ $2.68 extra per day (based on maximum singles age pension). You can read more about that here.
The Australian Council of Social Service (Acoss) acting CEO Edwina MacDonald said something many members know to be true. Those on Centrelink payments such as the Age Pension and even Jobseeker ‘cannot afford to eat enough, cannot get essential medication or healthcare, and often go into debt to pay their energy bills’.
That likely sounds all too familiar.
Edwina continues, ‘The inadequacy of these payments directly corrodes people’s capacity and confidence. Being forced to go without the basics like enough food impairs people’s ability to…engage in their community.’
This increase has us wondering what pensioners are supposed to spend this loose change on.
The soaring grocery prices? Over the past year, there has been a 16.2 per cent increase in the cost of fruit and vegetables and a 10 per cent increase for essentials like bread and cereal.
Rising energy prices? EnergyAustralia just increased prices by up to 14.1 per cent per year for those on variable contracts in QLD, NSW, SA and the ACT.
What about the 10th consecutive interest rate rise? You can read more about how this will affect you here.
And for those who rent, will this cover the increasing costs passed on by landlords? SQM Research reports that the average weekly cost of renting a property across the country increased by 18 per cent in the year leading up to January 12, 2023. The surge is even more significant in the major cities, with a collective rise of 24.6 per cent ($161 on average per month) during the same period.
So what CAN $2.68 pay for?
A McDonald’s hamburger or small chips (but not both).
Half a cup of takeaway coffee
3.61 per cent of rent (based on the $520 per week average in Sydney)
Almost an hour of reverse cycle airconditioning (assuming 6kW/hr)
As member @IdaConte put it: ‘I have to be on a special diet and $2.68 a day won’t be enough to buy 1 litre of special milk and sourdough bread for 1 day!!!!’
All Australians want is peace of mind and security.
Member @Monks summed it up perfectly: ‘We are not greedy, but I do think we should be able to turn the light on to see at night and to have the heater running to keep warm not go to bed at 7:30 pm so we can keep warm at night or sit rugged up in blankets during the day to keep warm.’
‘In the warmer weather we should not have to go to the local shopping centre to be comfortable. We are not second rate citizens and we do not live in a backward country so why does our governments think we are a pain on the system, but they were only too happy to take our money in taxes, and now we get treated like second rate. Not good enough.’
Not good enough, indeed.
If the current pension does not cover the basic living expenses (food, housing, electricity), then it’s clear something has gone terribly wrong with the system.
It doesn’t take an economist to know something needs to change. But where are those experts to come up with the solutions? There’s only so long we can wait.
While there are sentiments of ‘it’s better than nothing’, and there is definitely something to be said for the benefits of positive thinking (I’m usually a glass-half-full person), pensioners simply deserve better.
I, for one, am looking forward to the day we can share a positive and more substantial pension update.
To end on a positive note, I would like to share member @Isis’ comment: ‘Of course, it is a drop in the ocean. However, that drop will pay for a little more food for my pets. I can be frugal with myself, but the pets get me out of bed each day.’
Isn’t that a fantastic example of the Australian spirit?
As always, we will keep you updated with all the latest pension news.
Feel free to share what you’ll be spending your $2.68 per day on.
The Australian Council of Social Service (Acoss) acting CEO Edwina MacDonald said something many members know to be true. Those on Centrelink payments such as the Age Pension and even Jobseeker ‘cannot afford to eat enough, cannot get essential medication or healthcare, and often go into debt to pay their energy bills’.
That likely sounds all too familiar.
Edwina continues, ‘The inadequacy of these payments directly corrodes people’s capacity and confidence. Being forced to go without the basics like enough food impairs people’s ability to…engage in their community.’
This increase has us wondering what pensioners are supposed to spend this loose change on.
The soaring grocery prices? Over the past year, there has been a 16.2 per cent increase in the cost of fruit and vegetables and a 10 per cent increase for essentials like bread and cereal.
Rising energy prices? EnergyAustralia just increased prices by up to 14.1 per cent per year for those on variable contracts in QLD, NSW, SA and the ACT.
What about the 10th consecutive interest rate rise? You can read more about how this will affect you here.
And for those who rent, will this cover the increasing costs passed on by landlords? SQM Research reports that the average weekly cost of renting a property across the country increased by 18 per cent in the year leading up to January 12, 2023. The surge is even more significant in the major cities, with a collective rise of 24.6 per cent ($161 on average per month) during the same period.
What can a few extra dollars a day pay for? Image Credit: Shutterstock
So what CAN $2.68 pay for?
A McDonald’s hamburger or small chips (but not both).
Half a cup of takeaway coffee
3.61 per cent of rent (based on the $520 per week average in Sydney)
Almost an hour of reverse cycle airconditioning (assuming 6kW/hr)
As member @IdaConte put it: ‘I have to be on a special diet and $2.68 a day won’t be enough to buy 1 litre of special milk and sourdough bread for 1 day!!!!’
All Australians want is peace of mind and security.
Member @Monks summed it up perfectly: ‘We are not greedy, but I do think we should be able to turn the light on to see at night and to have the heater running to keep warm not go to bed at 7:30 pm so we can keep warm at night or sit rugged up in blankets during the day to keep warm.’
‘In the warmer weather we should not have to go to the local shopping centre to be comfortable. We are not second rate citizens and we do not live in a backward country so why does our governments think we are a pain on the system, but they were only too happy to take our money in taxes, and now we get treated like second rate. Not good enough.’
Not good enough, indeed.
If the current pension does not cover the basic living expenses (food, housing, electricity), then it’s clear something has gone terribly wrong with the system.
It doesn’t take an economist to know something needs to change. But where are those experts to come up with the solutions? There’s only so long we can wait.
While there are sentiments of ‘it’s better than nothing’, and there is definitely something to be said for the benefits of positive thinking (I’m usually a glass-half-full person), pensioners simply deserve better.
I, for one, am looking forward to the day we can share a positive and more substantial pension update.
To end on a positive note, I would like to share member @Isis’ comment: ‘Of course, it is a drop in the ocean. However, that drop will pay for a little more food for my pets. I can be frugal with myself, but the pets get me out of bed each day.’
Isn’t that a fantastic example of the Australian spirit?
As always, we will keep you updated with all the latest pension news.
Feel free to share what you’ll be spending your $2.68 per day on.
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