But they were certain about one thing yesterday - they will spend the money.

And that will make Treasurer Wayne Swan happy because that is exactly the reaction he is looking for to stimulate Australia's flagging economy.

"We certainly don't mind the Government giving us money, after all I gave them plenty in taxes over the years," 70-year-old Mr Fensom said from the couple's unit at The Figtrees Retirement Village.

"It's come as a total shock, but a very welcome one, not just for us but for all pensioners and carers who are really struggling," Mrs Fensom added.

"We are doing all right, but we have had to learn to live frugally on the $459 a fortnight aged pension.

"Fortunately, neither of us drink or play poker machines and we owned our home in Mangerton before selling up and moving into this retirement unit earlier this year.

"Owning our own home has helped us ease into retirement and I feel very sorry for all those people on pensions who are still paying rent," Mrs Fensom said.

Mr Fensom believes that although the one-off lump sum payment is badly needed, the Government must keep its promise of long-term pension reform.

"What pensioners get now is not enough, especially with the cost of living going up all the time," he said.

South Coast Combined Pensioners and Superannuants Association secretary Edna Stevenson was ecstatic at the news.

"Recognition of ... all pensioners and carers was something our organisation has been telling the Government was urgently needed for some time," Mrs Stevenson said.

"The fact that they have responded to those calls is simply marvellous."