The federal government will finalise aged pension reform plans by the May budget, Prime Minister Kevin Rudd says.
The government is under pressure to help struggling seniors combat cost-of-living pressures after blocking an opposition move to increase the single aged pension by $30 a week.
Instead, the government says it will wait for a review of the tax system and pensions due for completion in February.
Every $10-a-week increase in the pension cost the government $8 billion over the four-year forward estimates period.
"It is a huge, huge expenditure," Mr Rudd told ABC Radio today.
"We intend to get the numbers right rather than just pluck a number out of the air as others have done in the political debate on this.
"We are in the process of working through our conclusions on this and ... it will be done by the next budget."