Pension increase to ease economic pain

Published: October 13, 2008 - 09:28 PM

Pensioners get help to pay power and other costs

By Amanda Edmonds

Kevin Rudd has assured pensioners that the planned pension increase will go ahead in the face of the recent global financial crisis, The Herald Sun reported Saturday.

"We are absolutely determined to deliver pension reform," he said.

This announcement comes after a backlash from senior’s groups following hesitation by the Rudd Government to fully commit to the raise the pension amidst the struggling economy.

At present, single age pensioners receive $545 a fortnight, with lobby groups asking for a rise of $30 a week. This would increase the payment to $605 each fortnight, and would greatly assist pensioners who are struggling to make ends meet.

The planned reform is not without some controversy, with Rudd stating that “at the end of the day, the country has got to balance its books" and “there's never been a responsible Budget without some pain somewhere.”

Increasing the pension would place a heavy burden on the economy. Rudd explained that “every $10 increase across the board is $2 billion on the bottom line for one year, $8 billion across the forward estimates."

National Seniors Australia chief executive Michael O'Neil has welcomed the initiative, stating that pensioners have been struggling financially for many years now. "It will provide comfort to older Australians who are disturbed at the moment by the machinations in the market," Mr O'Neil said.

Pensioners are among the most vulnerable groups in society, and have been having more and more trouble paying for basic living costs. With the recent global financial crisis, it is more important then ever for pensioners to cut down on expenses where they can.

ShopAround.com.au offers a valuable service in comparing cheap gas companies and finding cheaper electricity providers, finding the cheapest power price for these necessary items for you. The proposed changes to the pension rate are expected to come into affect after next year’s budget, but ShopAround.com.au can help you save hundreds on the gas and electricity bill today! Why wait? Start saving now!

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