How one tweak can give us an increased pension!
The Age Pension is meant to be a financial backup and the superannuation system was designed to support us in a comfortable retirement. Still, increasingly older Australians are falling into poverty, so what’s going wrong?
It’s estimated one in five older Australians live in poverty. At the September 2024 indexation, the Age Pension single payments rose by $28.10 per fortnight, while combined payments for couples increased by $21.20 per person. That’s an increase of less than 3 per cent, which in no way covers the rising costs of basics such as energy, food and insurance, some of which have increased by double digits.
World Bank data has revealed that Australians pay up to 41 per cent more for meat, up to 45 per cent more for dairy and as much as 46 per cent more for fruit than other countries.
Add to that the increasing number of Australians heading into retirement with a mortgage or renting in unstable private markets with ever-increasing rents. Far from a comfortable retirement, many older Australians are facing a grim future.
So what’s the answer?
A recent report by The Australia Institute claims there is one simple tweak that could easily alleviate the problem.
The institute wants to remove the massive concessions to those retiring with millions of dollars and use that money to increase the Age Pension.
New research by The Australia Institute has found that Australia spends almost as much giving tax breaks to wealthy retirees as it does providing a safety net, the Age Pension, to those with little or no retirement savings.
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