A key measure used to calculate age pension payments is changing. How will this affect your benefits?

By Susan Thorp, Professor of Finance, University of Sydney

While discussion was focused on the federal government’s economic reform roundtable last week, a significant change that will mainly affect age pensioners flew under the radar.

For the first time in five years, the government will adjust the rates it assumes pensioners earn from their savings and investments, which for many will mean a change their social security payments.

The rates have been fixed since May 2020, when they were reduced in line with the record low interest rates set…

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