A retirees lobby group in Queensland says many older Australians are missing out on thousands of dollars a year in federal entitlements.
Association of Independent Retirees state president Eddie Childs says the Federal Government must immediately cut its deeming rate, which calculates income from investments.
He says while there have been seven cuts to the Reserve Bank's cash rate, the deeming rate has not changed.
It means the Federal Government is taking no account of reduced earnings from retirees' investments.
Mr Childs says self-funded retirees and those on part pensions are struggling.
"They're seeing a reduction in their income in excess of 20 per cent, while costs are going up," he said.
"If you're on $500 per week and you're getting a 20 per cent reduction, that's a fairly substantial reduction in your income, so it's quite a serious problem.
"It's just a money grab as far as we're concerned by the Federal Government." Mr Childs says many retirees are being pushed further below the poverty line.