Age and Disability Pensions

Julia · 9 September 2008

The 7.30 Report this evening featured a report on the woeful level of both the Age and Disability Pensions. About $273 per week. There are many calls to urgently increase this level for a Single person.

Even if people own their own homes (and that is by no means a given in this generation), they still face the same outgoings as a couple who get just over $456 each.

And it defies imagination to wonder how anyone could pay rent out of $273 and have anything left over to buy food, insurance, rego, medical etc.

Mr Rudd and Mr Swann have both admitted they couldn't live on this amount but maintain that no change will be offered until after the general tax review in February next year.

The generation we are talking about here includes the people (especially women) who didn't have much opportunity to save because of poor wages, staying home looking after children etc.

And Disability Pensioners are probably even worse off, given that they have not reached retirement age, often have little in the way of savings, rarely own their own home because of sickness having interrupted their careers, and they have additional medical costs.

We have a large surplus in the government coffers. Should the government, prior to the taxation review, make a one-off payment to pensioners to help them with what we all agree is the rising cost of living in every direction?

nioka · 9 September 2008

Julia said:
The 7.30 Report this evening featured a report on the woeful level of both the Age and Disability Pensions. About $273 per week. There are many calls to urgently increase this level for a Single person.

Even if people own their own homes (and that is by no means a given in this generation), they still face the same outgoings as a couple who get just over $456 each.

And it defies imagination to wonder how anyone could pay rent out of $273 and have anything left over to buy food, insurance, rego, medical etc.

Mr Rudd and Mr Swann have both admitted they couldn't live on this amount but maintain that no change will be offered until after the general tax review in February next year.

The generation we are talking about here includes the people (especially women) who didn't have much opportunity to save because of poor wages, staying home looking after children etc.

And Disability Pensioners are probably even worse off, given that they have not reached retirement age, often have little in the way of savings, rarely own their own home because of sickness having interrupted their careers, and they have additional medical costs.

We have a large surplus in the government coffers. Should the government, prior to the taxation review, make a one-off payment to pensioners to help them with what we all agree is the rising cost of living in every direction?

Julia, I think your pension amounts are wrong for a couple. That is the amount for the couple, not each. They each get that amount every fortnight.
Certainly not enough to live on with any degree of comfort. Add to that the inflation rate for the items they purchase is probably much higher than the general inflation rate.
Maybe the pensioners need to strike for higher wages and conditions. Not as stupid a suggestion as it sounds because a lot of aged pensioners do a big percentage of voluntary work. In this area, the coastguard, op shops, meals on wheels, home help,patient transfer to and from doctors and hospitals to name a few.

prawn_86 · 9 September 2008

Typical political inaction, as it always has been and as it always will be.

"Of course its bad, but we are not going to do anything about it, because it doesnt affect us directly"

Luckily i know that by the time I retire, I will most probably need to supply all my fundings, and am certainly not relying on any form of pension.

And for another topic... Why is it the harder you work, the more you get penalised? (ie less pension/higher taxes etc) I'll start a thread on this later.

Julia · 10 September 2008

nioka said:
Julia, I think your pension amounts are wrong for a couple. That is the amount for the couple, not each. They each get that amount every fortnight.
Certainly not enough to live on with any degree of comfort. Add to that the inflation rate for the items they purchase is probably much higher than the general inflation rate.
Maybe the pensioners need to strike for higher wages and conditions. Not as stupid a suggestion as it sounds because a lot of aged pensioners do a big percentage of voluntary work. In this area, the coastguard, op shops, meals on wheels, home help,patient transfer to and from doctors and hospitals to name a few.

Yes, Nioka, you are right, of course. The couple amount is each per fortnight and the single amount is one person per week. Sorry for stuffing it up.

Timmy · 10 September 2008

Hard to make any case for $273 per week being anywhere close to enough. How do you live on that? Is the proposal for a one-off payment just a tide-over sort of idea ahead of the full review in February? And after the reveiw in February how long before an increase in these payments is implemented? How does Australia compare to other countries with respect to how we fund our pensioners? Sorry for all the questions I am not fully across this issue.

Sean K · 10 September 2008

Seems like we're about to go through a very difficult stage of falling asset prices (individual investments/house values) and poor long term Gov planning (crap pensions, and the super fund probably down 25% at the moment).

Will be a tough few years.

Retirement age needs to be lifted and everyone recognise that a 2008 70 year old can probably contribute......

Just don't be driving in front of me!!!!

Certainly needs to be some fundamental changes occur in the very short term for our nation builders to enjoy their last 20 years ish.

son of baglimit · 10 September 2008

funny how times change.

12+ months ago this thread would have ripped apart by those who say the govt should not pay anything for those who have been incapable of creating enough wealth for their retirement / difficult times.

in this era of hard times, it seems compassion has re-emerged.

prawn - maybe when you start your intended thread those heartless souls will deliver their venomous words.

Sean K · 10 September 2008

son of baglimit said:
funny how times change.

12+ months ago this thread would have ripped apart by those who say the govt should not pay anything for those who have been incapable of creating enough wealth for their retirement / difficult times.

in this era of hard times, it seems compassion has re-emerged.

prawn - maybe when you start your intended thread those heartless souls will deliver their venomous words.

SOB, this may be just a blip, or not.

In the end, we are all responsible for our own actions, and the current retirees know exactly what they are entitled to. Except that their house values will fall dramatically, reducing our inheritanceces... (sorry spell check brain not in operation right now) And, their 'managed' funds have quartered and may halve in value this and next year. Many have lost entire entitlements.

It's going to be tough for their families, unless their children are prepared to pay them back for all those years of footy and cricket training, etc...

Julia · 10 September 2008

son of baglimit said:
funny how times change.

12+ months ago this thread would have ripped apart by those who say the govt should not pay anything for those who have been incapable of creating enough wealth for their retirement / difficult times.

in this era of hard times, it seems compassion has re-emerged.

prawn - maybe when you start your intended thread those heartless souls will deliver their venomous words.

The people who are currently receiving age pensions didn't have the benefit of compulsory Super contributions. Probably they thought their income for their old age was covered by their taxes. And they expected it to be an amount on which they could live.

I can also understand to some extent the government's reticence in not acting until the tax review has been completed, in the sense that numbers becoming eligible for the government pension in coming years will be expanding exponentially. This will be noticeable even now as many people whose investments have fallen in value will (via the assets and income tests) become eligible for a part pension.

It would probably be to their political advantage, though, to make some sort of one-off bonus payment, as the tide of public feeling against poverty amongst the aged seems to be growing.

son of baglimit · 10 September 2008

not when the next election is 2 years away julia.

swan followed on costellos lead and again provided the $500 'once off' bonus in the may budget, and then from memory made it permanent.

as for raising the fortnightly payment, see the 1st line.

Timmy · 10 September 2008

This just in:

Full article at
http://www.news.com.au/business/story/0,27753,24324387-31037,00.html

Opposition to push for pension rise

Article from: AAP /
September 10, 2008 02:28pm

The Federal Opposition will introduce legislation to parliament next week which aims to increase the aged pension by $30 a week.............

Mr Rudd is insistent the Government will not consider any increase until a review of pensions and carer payments is finalised in February next year............

Mr Truss expects the legislation will force the Government to take immediate action on pensions.

The bill, if it reaches the Senate, is likely to have the support of the Australian Greens who have called previously for an immediate $30 a week increase to the single base rate.
----------------------------------------

$30 a week extra, not a lot but should at least be a help.

Julia · 10 September 2008

son of baglimit said:
not when the next election is 2 years away julia.

swan followed on costellos lead and again provided the $500 'once off' bonus in the may budget, and then from memory made it permanent.

as for raising the fortnightly payment, see the 1st line.

SOB, I wouldn't underestimate 'grey power', especially when there is the media also taking up the cause. It will be interesting to see what happens when Dr Nelson puts up his legislation for an increase of $30 p.w.

Then he is going to have to justify why he isn't asking for a similar increase for Disability Pensioners, Widows, Veterans, Carers, Sickness Benefits and for that matter, Youth Allowance and the Dole, the last two of which are considerably less than the age pension.

Calliope · 11 September 2008

Julia said:
SOB, I wouldn't underestimate 'grey power', especially when there is the media also taking up the cause. It will be interesting to see what happens when Dr Nelson puts up his legislation for an increase of $30 p.w.

Then he is going to have to justify why he isn't asking for a similar increase for Disability Pensioners, Widows, Veterans, Carers, Sickness Benefits and for that matter, Youth Allowance and the Dole, the last two of which are considerably less than the age pension.

Mr Rudd will eventually allow these increases, but he will desperately try to delay them to as near as possible to the next election. They will make a huge hole in Labor's 22 billion election slush fund.

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