Pandemic pain in the pockets of pensioners

The latest economic victims of the coronavirus pandemic could be pensioners.

Senior couple sitting on a wooden bench in a park. Source: Getty

For the first time in 23 years, they won't be getting an automatic increase this year. But the Federal Government has signalled support could be on its way.

Low inflation is generally a cause for celebration. But now, it's given the Federal Government an unexpected problem.

The rate of pensions is linked to inflation via the Consumer Price Index.

The economic upheaval brought on by the COVID-19 pandemic has caused inflation to go backwards.