Media Release
16 May 2011

Pensioners struggle for basic necessities as costs rise

New figures released by the Australian Bureau of Statistics today confirm what struggling pensioners already know- even the basic necessities are getting more expensive.

The PBLCI (Pensioner and Beneficiary Living Cost Index) rose faster than the CPI in the March quarter confirming that cost of living pressures are falling more heavily upon older consumers, particularly pensioners, when compared to the general community.

The largest increases within the PBLCI were for food (+3.3%), transportation (+3.6%), housing (+1.7%) and health (+6.7%).

“These commodity items are clearly necessities – not something that older Australians can cut back on,’’ National Seniors chief executive Michael O’Neill said.

“Today’s ABS figures confirm the pressure pensioners and older Australians on fixed incomes are feeling at the moment and it’s not going to get any easier,’’ he said.

The ABS pointed to the Qld floods and Cyclone Yasi for increases in particular fruit and vegetables; increasing petrol prices leading to more expensive transportation and increases in electricity and rents contributing to rising housing costs.

In a 2009 study Professor Peter Brandon of Carelton College and Dr Jeromey Temple of the ANU found that about 11 per cent of Australians aged 55 and over had to either dispose of assets of take out a loan in the previous 12 months to meet ongoing day-to-day expenses – specifically because their current income was not sufficient.

“People will be chewing into their savings and having to make difficult choices about what they can and cannot afford,’’ he said.

“With energy prices expected to soar even further this year, Governments at all levels needs to look at how to ease the increasing cost of living for our pensioners and self funded retirees on limited fixed incomes.”

Michael O’Neill is available for interview.

---

With a quarter of a million members Australia-wide, National Seniors is the consumer lobby for the over 50s. It is the fourth largest organisation of its type in the world.