Biggest boost to age pension in years doesn't amount to much

An elderly woman counting loose change. Source: AAP

Australia's aged pensioners are about to get their biggest income boost in seven years. But pensioners say it doesn't amount to much - the increase of an extra $14.80 a fortnight works out to just over one dollar extra a day, leaving many of Australia's 2.6 million aged pensioners struggling to pay their bills.

The new aged pension increase means that the rate of the single pension will rise to $25,155 a year.

Couples will receive $37,924 annually.

Fortnightly that means singles will receive an extra $14.80 each fortnight, bringing the payment, to $967.50.

Couples will get an extra $22.40, taking their fortnightly payment to $1,458.60.

The federal government also allows pensioners to supplement their income.

Singles can earn up to $180 a fortnight before having the pension reduced, and couples can earn $320.

The pension is paid by the federal government but each state and territory also offers concessions for services such as electricity, rates and water.

Chief Economist at AMP Shane Oliver says the dollar a day increase isn't going to buy pensioners much more than a few cups of coffee.

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