Charlotte Foster
Retirement Income

Jim Chalmers confronted by struggling pensioner over the cost of living crisis

A struggling pensioner with just $20 in her bank account has quizzed treasurer Jim Chalmers on what essentials she should be forced to give up in order to keep up with the surge in cost of living prices. 

The Treasurer appeared on ABC's Q+A on Thursday night for a post-budget breakdown, when Fiona got her chance to ask him a question. 

“With non-discretionary items rising faster than CPI indexation, welfare recipients like myself are meant to be grateful for (the rise to indexation). What essentials should I be cutting from my budget?” she said. 

Age, Carer and Disability Support Pensioners will receive a rise of $38.90 a fortnight for singles and $58.80 for couples as part of routine indexation, but Fiona said it was still not enough.

“It’s all falling behind, I’m playing catch up,” she said.

Her desperate plea left Chalmers struggling to offer her any hope, as he warned inflation would continue to rise, forcing the government to make difficult decisions. 

“The best thing we can do is try and address inflation. That’s what the budget was about,” he said. 

“But I don’t want to pretend to Fiona or to anyone in Fiona’s position that the budget nine nights ago fixed all of these challenges. "

“I do need to be upfront with all of you about the nature of this challenge that we are confronting right now."

And our best contribution to this problem is being restrained in our spending.”

Dr Chalmers was called up by host Stan Grant, who said Fiona’s question had been more about hard decisions she was having to make. 

For example, she said she had to make the choice to go for an eye scan rather than go to a doctors appointment because her GP no longer bulk bills. 

Dr Chalmers was unable to give Fiona a straight answer, rather saying he understood how difficult it was for people in a similar position.

“The cost of living is going through the roof, and that has a disproportionate impact on the most vulnerable amongst us, and we understand that,” Dr Chalmers said. 

“My responsibility to you, Fiona, and to the whole country, is to try and take the right economic decisions, to make sure we are not making inflation worse.”

“The main thing I can do here – the worst thing that could happen for Fiona and for people around Australia – is if we let this inflation get out of control … That’s what I’m trying to avoid.”

Image credits: Q+A / Getty Images 

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retirement income, pensioner, finance, cost of living, Jim Chalmers