6 December 2016
On 1 January 2017 the Federal Government will make changes to the Age Pension, meaning around 300,000 to 350,000 Australians can expect a cut to their income as a present this Christmas.
Pensioners will start to lose eligibility to the full pension from a relatively small amount of assets (around $350,000 for a couple who own their own home). The amount they lose from the pension now drops away much more steeply than before, with access to the part-pension ending at a level where previously a couple would have received about $250 per week.
The table below shows the reduction in pension which is to occur.
The pension cuts affect much of middle Australia in retirement - mainly retirees with a combined pension and superannuation retirement income of around $1000 per week (as a couple). This group is paying for all the savings made by the Government in this area, through their pensions being cut - and the richest, those who can afford to pay more - are paying very little extra.
Affected retirees will now have a lower standard of living in retirement than what they had planned for and many will be forced to dip into their superannuation savings faster than what is generally advised. Instead of super being planned to last 20-25 years into retirement it may only last a little over 10 years.
Quotes attributable to ACTU Secretary Dave Oliver:
On 1 January 2017 the Federal Government will make changes to the Age Pension, meaning around 300,000 to 350,000 Australians can expect a cut to their income as a present this Christmas.
Pensioners will start to lose eligibility to the full pension from a relatively small amount of assets (around $350,000 for a couple who own their own home). The amount they lose from the pension now drops away much more steeply than before, with access to the part-pension ending at a level where previously a couple would have received about $250 per week.
The table below shows the reduction in pension which is to occur.
The pension cuts affect much of middle Australia in retirement - mainly retirees with a combined pension and superannuation retirement income of around $1000 per week (as a couple). This group is paying for all the savings made by the Government in this area, through their pensions being cut - and the richest, those who can afford to pay more - are paying very little extra.
Affected retirees will now have a lower standard of living in retirement than what they had planned for and many will be forced to dip into their superannuation savings faster than what is generally advised. Instead of super being planned to last 20-25 years into retirement it may only last a little over 10 years.
Quotes attributable to ACTU Secretary Dave Oliver:
- “This is just the latest example of the Federal Government trying to improve the budget by squeezing hard working people in their retirement.”
- “The pensioners targeted by these cuts have worked hard their whole lives and are entitled to a comfortable retirement.”
- “They rely on the pension to make ends meet each week and now the government is pulling the rug out from under them.”
- “It’s disgraceful that some pensioners are going to be told just before Christmas that they are hundreds of dollars a week out of pocket, all while Malcolm Turnbull continues to spruik a massive corporate tax handout.”
Impact of proposed Pension cuts:
CURRENT PENSION
|
NEW PENSION
|
DIFFERENCE
|
COUPLE : HOMEOWNER
| ||
$500
|
$444
|
- $56
|
$450
|
$344
|
- $106
|
$400
|
$244
|
- $156
|
$350
|
$144
|
- $206
|
$300
|
$44
|
- $256
|
$278
|
$0
|
- $278
|
COUPLE : NON-HOME OWNER
| ||
$450
|
$414
|
- $36
|
$400
|
$314
|
- $86
|
$350
|
$214
|
- $136
|
$300
|
$114
|
- $186
|
$250
|
$14
|
- $236
|
$242
|
$0
|
- $242
|
SINGLE : HOME OWNER
| ||
$350
|
$314.50
|
- $35.50
|
$300
|
$214.50
|
- $85.50
|
$250
|
$114.50
|
- $135.50
|
$200
|
$14.5
|
- $185.50
|
$193
|
$0
|
- $193
|
SINGLE : NON-HOME OWNER
| ||
$250
|
$184.50
|
- $65.50
|
$200
|
$84.50
|
- $115.50
|
$157.50
|
$0
|
- $157.50
|
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