Struggling to afford retirement, older Australians call for pension increase

October 30 2026
ABC News

Rising living costs and healthcare expenses are putting increasing pressure on older Australians.   :(

In short:
Many older Australians are struggling with rising expenses, leaving them unable to enjoy the retirement they planned for.

Retirement cost figures show the age pension falls well short of what is needed for a comfortable lifestyle, particularly for renters.

What's next?
Retirees are calling for greater support to ensure older Australians can live with dignity.


Many retired Australians have paid off their home, have a good superannuation balance and are having their savings boosted by higher interest rates.

But the pandemic, interest rate rises, the Iran war, housing shortages and health concerns mean others are not living the laid-back life they planned for.

At a certain age it's often not possible to work or earn your way out of a financial bind.   :(

For Katharine Morris and her husband, retirement has been "stressful and demoralising".

They live in a 25-year-old caravan that is usually parked outside their son's rental in outer Sydney.

"Our future is uncertain, with no way to prepare for … when we can no longer live in a caravan," Ms Morris said.

Katharine Morris stands in front of a quite caravan with an awning.
Katharine Morris and her husband live in a caravan as they struggle to afford retirement.

Calls to raise the age pension
After years working on a family farm, a lack of succession planning meant the couple and their children left the property with "no super, no savings and no employment prospects".

They established a tourism business but it was devastated by the global financial crisis.

Then Ms Morris's health issues meant they had to give up their fly-in, fly-out jobs.

They could no longer afford the repayments on their home or the investment property they planned to retire to in Western Australia.

"For the third time we were broke again," Ms Morris said.

Australian money
Katharine Morris and her husband face an uncertain retirement, with rising petrol and healthcare costs making it difficult to plan for a secure future.

These days the couple worry about constantly rising health costs, particularly specialist appointments.

They'd like to be travelling in their caravan, "enjoying beautiful country sunsets and sunrises".

But the rising cost of petrol means they often have no choice but to stay put until their next age pension payment arrives.

Ms Morris's message to the federal government is simple.

"Raise the age pension to something decent, to help us do more than just survive," she said.

A person's hand holding a receipt near a trolley
Retirees are calling on the federal government to increase the age pension.

Moving overseas to avoid poverty
Robert Donnelly moved to Batam, an Indonesian island a short ferry trip from Singapore, three years ago.

He made the decision to leave Australia when his age pension and income from taxi-driving two days a week was no longer covering rising costs of living on the Gold Coast.

"I was not prepared to pay the considerable increased asking rates and live in poverty," Mr Donnelly said.


Robert Donnelly moved to Indonesia after he could no longer afford to live comfortably on the Gold Coast.

He has a comfortable life in Batam, or "God's waiting room", as he describes it.

Mr Donnelly said he plays golf, swims and cooks and pays $180 per week in rent. Electricity, security and groceries from local markets are all affordable.

Pros and cons of retiring overseas
an Older man seen from the back stands at a railing and looks out to sea.
With some foreign countries offering cheaper living expenses, it is no surprise that moving overseas to retire is increasingly attractive to some older Australians. But before you up stumps and book that flight, read this.

But he said the Indonesian island is not home and it is his "earnest desire" to return to Australia as soon as possible.

"I have family, friends, memories. I'm 78 in February. I don't want to leave this life other than in Australia," Mr Donnelly said.

He did not expect to be priced out of an affordable retirement in Australia.

"I contributed to [the] Australian workforce for 58 years plus. I was married and had three sons. I was active in many forms of community activities and contributed positively to how Australia is today," Mr Donnelly said.

"I'm not asking for handouts, just a level playing field."
Robert Donnelly stands in shallow water at the beach.
Despite enjoying a more affordable lifestyle in Indonesia, Robert Donnelly hopes to return to Australia eventually.

He would like to see greater investment in social housing, a reduction in overseas migration, and for politicians to meet everyday people — not just big business groups and lobbyists.

Mr Donnelly also has some advice for younger Australians.

"Work hard all your life, save your money, buy a house and don't ever make any decisions other than these three.

How much does comfortable retirement cost?
Association of Superannuation Funds of Australia (ASFA) chief executive Mary Delahunty says "a comfortable retirement is not a luxury lifestyle".

ASFA says a comfortable retirement includes top-cover health insurance, a reasonable car, meals out most weeks, a yearly domestic holiday and an overseas holiday roughly every seven years.

"Superannuation is essential to providing a more comfortable lifestyle than what is possible on the pension alone," Ms Delahunty said.

Mary Delahunty wears a brown dress-jacket and stands in front of a wooden wall with a plaque that reads ASFA.
Mary Delahunty says superannuation can help Australians achieve a more comfortable retirement.

For Australians on the age pension the gap in income for a comfortable retirement is tens of thousands of dollars.   :(

Even a modest lifestyle that includes basic private health insurance, owning a cheaper older car, and infrequent inexpensive meals out is beyond the budget on an age pension. :(

ASFA annual budgets for ages 65-84 (June quarter 2026)
     Comfortable lifestyle (home owners)      Modest lifestyle (home owners)      Modest lifestyle (renters)      Age pension      Age pension (with rent assistance)
Single      $56,166      $36,548      $51,418      $32,180      $38,014
Couple      $78,998      $52,690      $69,376      $48,516      $54,017
Renters need an even higher income and, again, the age pension with rent assistance is below what is needed.

Pensions and rent assistance go up twice a year to ensure they keep pace with the cost of living.

Reaching retirement as a renter
A woman sitting at a desk with a computer.
The dilemma of lifelong renters is one of the housing-related issues uncovered by the ABC Your Say project.

But for retirees like Ms Morris and Mr Donnelly it has not been enough to make their lives comfortable and they are calling on the federal government to do more.

A spokesperson for Social Services Minister Tanya Plibersek said "older Australians helped build this country, and Labor believes that older Australians deserve a fulfilling and secure retirement".

The spokesperson said the full rate for a single pensioner had increased by more than $6,500 a year since Labor came into government.

Pensioners are now receiving up to $2,000 a year more in rent assistance.

"And we are helping with other cost of living measures like $7.70 medicines and more bulk-billing," the spokesperson said.

whiteknight wrote on Oct 30^th, 2026 at 9:12am:

ASFA says a comfortable retirement includes top-cover health insurance, a reasonable car, meals out most weeks, a yearly domestic holiday and an overseas holiday roughly every seven years.

And albo wants to drop health cover rebates, for over 65's. Doesn't affect me, no insurance for 20 years.

A reasonable car - Ok good second hand.

A domestic holiday - yep. I save for that

An overseas holiday - not on  my agenda.

I save throughout the year for things  like registration and rates in a special account. No hardship.

Five superannuation moves to add almost $1m to your retirement balance
Modelling shows that minor tweaks to risk, fees, and contributions over your working life can deliver an extra $970,000 – and fundamentally change how you spend in retirement.
https://www.afr.com/wealth/personal-finance/five-superannuation-moves-to-add-almost-1m-to-your-retirement-balance-20261030-p61804

Intergenerational theft by the elderly.
Ran up a couple of trillion in debt and left their kids to pay it off and try to get a deposit for a million dollar home.

I would include the family home in the assets test and cut the pension to the bone.

This is the karma that these entitled narcissists deserve .

WK, do you think it is deceptive for you to post this on behalf of the Greens as if it is some kind of grass roots thing?

A lot of people - millions of people - don't get any pension
or only a part pension because they have Super and some money or other assets-
even some shares or whatever.

aquascoot wrote on Oct 30^th, 2026 at 5:44pm:

Intergenerational theft by the elderly. Ran up a couple of trillion in debt and left their kids to pay it off and try to get a deposit for a million dollar home. I would include the family home in the assets test and cut the pension to the bone. This is the karma that these entitled narcissists deserve .

Yes and no.

Australian homes cost ridiculous amounts because of government regulations. Most of the 'value' is due to land valuation - ie scarsity. Land scarsity on a continent with 27 million people....

Debt - yes, ridiculous/sinister.

Bobby. wrote on Oct 30^th, 2026 at 6:53pm:

A lot of people - millions of people - don't get any pension or only a part pension because they have Super and some money or other assets- even some shares or whatever.

A friend of mine is an accountant who specialises in Super.

One of his clients has $27 Million in super.

Poor old Aussie battler   :'(

greggerypeccary wrote on Oct 30^th, 2026 at 8:27pm:

Bobby. wrote on Oct 30th, 2026 at 6:53pm: A lot of people - millions of people - don't get any pension or only a part pension because they have Super and some money or other assets- even some shares or whatever. A friend of mine is an accountant who specialises in Super. One of his clients has $27 Million in super. Poor old Aussie battler   :'(

An accountant would never say such a thing - it's a betrayal of confidence.

Bobby. wrote on Oct 30^th, 2026 at 8:30pm:

greggerypeccary wrote on Oct 30th, 2026 at 8:27pm: Bobby. wrote on Oct 30th, 2026 at 6:53pm: A lot of people - millions of people - don't get any pension or only a part pension because they have Super and some money or other assets- even some shares or whatever. A friend of mine is an accountant who specialises in Super. One of his clients has $27 Million in super. Poor old Aussie battler   :'( An accountant would never say such a thing - it's a betrayal of confidence.

He didn't tell me his/her/their name, Bobby.

There was no betrayal of confidence.

Similarly, a doctor can tell anyone they like that they have a patient who drinks two bottles of Whiskey a night.

As long as they don't reveal their name - e.g. Frank - it's perfectly fine.

greggerypeccary wrote on Oct 30^th, 2026 at 8:32pm:

He didn't tell me his/her/their name, Bobby. There was no betrayal of confidence. Similarly, a doctor can tell anyone they like that they have a patient who drinks two bottles of Whiskey a night. As long as they don't reveal their name - e.g. Frank - it's perfectly fine.

Still - it's not professional to say things like that.

Bobby. wrote on Oct 30^th, 2026 at 8:34pm:

greggerypeccary wrote on Oct 30th, 2026 at 8:32pm: He didn't tell me his/her/their name, Bobby. There was no betrayal of confidence. Similarly, a doctor can tell anyone they like that they have a patient who drinks two bottles of Whiskey a night. As long as they don't reveal their name - e.g. Frank - it's perfectly fine. Still - it's not professional to say things like that.

I just hope they get a partial pension at least.

Pretty hard to live on $27 Million.

greggerypeccary wrote on Oct 30^th, 2026 at 8:27pm:

Bobby. wrote on Oct 30th, 2026 at 6:53pm: A lot of people - millions of people - don't get any pension or only a part pension because they have Super and some money or other assets- even some shares or whatever. A friend of mine is an accountant who specialises in Super. One of his clients has $27 Million in super. Poor old Aussie battler   :'(

So?

Probably a Vice Chancellor  or head of a government department.

educated....

greggerypeccary wrote on Oct 30^th, 2026 at 8:37pm:

Bobby. wrote on Oct 30th, 2026 at 8:34pm: greggerypeccary wrote on Oct 30th, 2026 at 8:32pm: He didn't tell me his/her/their name, Bobby. There was no betrayal of confidence. Similarly, a doctor can tell anyone they like that they have a patient who drinks two bottles of Whiskey a night. As long as they don't reveal their name - e.g. Frank - it's perfectly fine. Still - it's not professional to say things like that. I just hope they get a partial pension at least. Pretty hard to live on $27 Million.

Plenty of people are on partial pensions or no pensions - millions of people.

Bobby. wrote on Oct 30^th, 2026 at 8:49pm:

greggerypeccary wrote on Oct 30th, 2026 at 8:37pm: Bobby. wrote on Oct 30th, 2026 at 8:34pm: greggerypeccary wrote on Oct 30th, 2026 at 8:32pm: He didn't tell me his/her/their name, Bobby. There was no betrayal of confidence. Similarly, a doctor can tell anyone they like that they have a patient who drinks two bottles of Whiskey a night. As long as they don't reveal their name - e.g. Frank - it's perfectly fine. Still - it's not professional to say things like that. I just hope they get a partial pension at least. Pretty hard to live on $27 Million. Plenty of people are on partial pensions or no pensions - millions of people.

Well, hopefully when I get there, I'll get a full pension.

If there still is such a thing   :-/

greggerypeccary wrote on Oct 30^th, 2026 at 8:50pm:

Bobby. wrote on Oct 30th, 2026 at 8:49pm: Plenty of people are on partial pensions or no pensions - millions of people. Well, hopefully when I get there, I'll get a full pension. If there still is such a thing   :-/

One of my friends doesn't get any aged pension -
no health care card for his medications -
no reduction on his car rego, no reduction on: rates, electricity, gas, water etc.

Why? -  he has some shares he inherited when his whole family died.
He's alone in the world with no help after working over 40 years and paying his taxes.