Treasurer Wayne Swan admits he couldn't survive on the aged pension but says recipients will have to wait until next year before the government considers any increase.
From September 20, the single aged pension will be around $560.
When asked if he could survive on that amount, Mr Swan said no.
"No, the single rate pension is totally inadequate," Mr Swan told the Nine Network.
Mr Swan said in recognition of that, the government provided a $500 bonus and increased the utility allowance in last year's budget.
But he said pensioners would have to wait until next year before the government considers lifting the pension.
"The reason we put in place the $500 bonus and the increase in the utilities allowance was in recognition of how difficult they are doing it at the moment," Mr Swan said.
"But we can't undo in one budget what the previous government didn't do in 12.
"We are considering a rise, we said we would have the report from the Henry review back by February, and that would be considered in the context of the next budget."
Treasury secretary Ken Henry will head a review of taxes on work, investment, property, savings and consumption and their impact on individuals, families and retirees.
