As the cost of living continues to weigh on older Australians, National Seniors Australia (NSA) is calling for a more targeted approach to concessions and financial support for Age Pension recipients.
The proposal is straightforward: create a new Pensioner Extra Concessions Card for pensioners with the least financial capacity, giving them access to additional concessions and assistance while maintaining all existing Pensioner Concession Card benefits.
This isn't about taking things away, it's about giving more to those who need it.
At present, every pensioner who qualifies for a Pensioner Concession Card receives the same concessions regardless of their financial circumstances. This means a pensioner with substantial assets can access the same concessions as someone with very limited savings and few resources to draw upon.
NSA believes a Pensioner Extra Concessions Card would provide governments with a practical way to better support those older Australians most vulnerable to financial stress. Eligibility could be determined using income and asset information already collected as part of Age Pension assessments, making the system simple to administer.
NSA research supports this idea
The need for targeted support is reinforced by National Seniors research into affordability concerns among older Australians and our research into the affordability of health costs .
In a survey of more than 4,000 people aged 50 and over, pensioners were significantly more likely than self-funded retirees to express concerns about meeting everyday expenses over the next 12 months. Full pensioners reported the highest levels of concern, particularly when it came to essentials such as electricity, groceries, healthcare, transport, and insurance.
The same results were reflected in an earlier survey of 5,400 older Australians, which asked people if they had been prevented from accessing healthcare due to cost. It showed that people whose only income was from the pension were two to three times more likely to have had cost prevent them from accessing healthcare than those with other income sources.
These findings highlight an important reality: while older Australians are often grouped together in policy discussions, their financial circumstances can vary enormously.
Some retirees have substantial savings and assets, while others rely almost entirely on the Age Pension to cover their daily living costs.
A Pensioner Extra Concessions Card would help ensure future assistance reaches those most in need. It could be used to deliver higher concession rates on energy bills, council rates, medicines, and other essential services, providing meaningful relief where it would make the biggest difference.
The proposal could also support the delivery of future programs targeted at low-income pensioners, helping governments direct assistance more effectively while recognising the financial challenges many older Australians face as they age and draw down their savings.
Importantly, it would ensure that retirees who spend down their savings are supported if they do.
For National Seniors, the principle is simple: support should be fair, targeted and responsive to need. As affordability pressures remain a major concern for many older Australians, a Pensioner Extra Concessions Card could provide a practical and equitable way to help pensioners who are doing it toughest.
To support our policy, join our Fix Pension Poverty campaign today.
