New figures reveal the pension has increased by more than the Consumer Price Index (CPI) this year and – surprisingly – in 19 of the last 23 years.
CPI figures for the March 2023 quarter show an annual increase of 5.8%, the second highest increase since 2001.
While this impacts everyone, it can be particularly challenging for those on a fixed income, such as the pension.
However, a close of the last 23 years – that’s more than 80% of the time since 2001. For example, in the year to March 2023, when CPI went up 5.8%, the pension went up 7.8%.
The graph on the right shows what’s happened in this period, including the big kicker pensioners received in 2010 (16.5% increase), which really made a difference between the two.
Another interesting financial factor to note is that, because the Village’s affordable land lease model sees home owners own their home but lease the land its on, pensioners can access rent assistance from Centrelink for the land component, making it much more affordable.
Given that, we wholeheartedly welcomed the recent Federal Budget announcement of a 15% increase in rent assistance from September this year!
While most Village residents move in to enjoy the security, lifestyle, companionship, activities and quality of life on offer, it’s comforting to know the finances are going to work in the long run as with research underscoring the health and wellbeing benefits of increased social interaction living longer is more likely!
Information in this article is true and correct as of 21 June 2023.
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