Niue's government says its decision to increase pensions is partly aimed at keeping people on the island.
The new provisions mean men will now receive the same as women - a payment of 28 US dollars a fortnight between the age of 55 and 59 whether or not they are working.
The universal child allowance is going up from 30 US dollars to forty dollars a quarter.
The Minister for Community Affairs, Fisa Pihigia, denies the move is designed to attract political support:
"I see it as something that needs to improve the standard of living of my people here, particularly the children. So I don't see it as a political move."