Posted September 16, 2018 07:14:18It’s been a year since the Federal Government cut the rate on a $500,000 concessional pension from 20 per cent to 12 per cent.
But as the economy continues to tank, the government has announced a further round of cuts to the maximum pension age to 67.
“What we’re trying to do is reduce the impact of these pension changes, and it’s not an easy thing to do,” Finance Minister Mathias Cormann said.
“It’s also not a straightforward thing to keep up with.”
The Labor Party wants to reduce the maximum age to 70 by 25 years old.
The Coalition, which is in opposition, wants to cut it to 65.
Both have been accused of wanting to cut benefits for people older than 67.
This is not a simple matter of cutting benefit payments, but a complex one.
The average pension age is 70 years old, so you’d need to cut the benefit by 25 per cent of your pension income to match.
That’s a lot of money, especially if you’re in a union pension.
A pension of $250,000 would be worth $14,800 a year, or $2,200 a month.
To be eligible for a higher pension, a person would have to have worked at least 50 years for their current job.
So if you were earning $100,000 a year at your current job and you were to retire at 65, you’d still need to be working for a minimum of 10 years to reach your full pension age.
That’s a pretty big difference.
How much can you save if you cut your pension age?
The government’s decision to cut pension benefits has resulted in a wave of pension changes in Australia.
While pensioners can expect a 10 per cent cut to their benefits if they reduce their age to 62, the impact on pensioners is more severe.
In NSW, for example, the average pensioner is currently saving $1,700 a year in savings.
But with the average retirement age now rising to 70, pensioners are now facing a $12,400 a year loss in savings, and a $9,800 annual cost to maintain their pension.
The impact on people with older relatives is particularly damaging, because they are likely to have more children and other responsibilities than older people.
A survey by the Australian Council of Social Service (ACSS) shows that between 2000 and 2015, more than one in five people aged 55 to 64 in the Australian Capital Territory (ACNT) experienced significant hardship because of their ageing.
More than half of those in the Aotearoa had to rely on other sources of income, including their partner or child.
Another 12 per in 10 people in the NT experienced significant financial hardship because they were elderly.
“People are going to need to think hard about the long-term implications of this,” said the ACSS.
“If you can’t afford to maintain a pension and your children are at risk of having a child, then that can’t be the kind of lifestyle you want to lead.”
The most significant impact of the pension changes was on retirees with long-standing disabilities.
Many people who had disabilities had to work longer for lower pension benefits than their colleagues.
Many people with disabilities were unable to access the disability benefits they needed because they could not afford to meet their basic needs.
One in three people with a disability reported a lack of access to a pension.
People with disabilities also experienced a significant loss in their savings due to the changes to their pension, and because of changes to the benefits system, such as lower lump-sum payment rates.
A new report from the Australian Retirement Income Trust (ARCIT) shows more than half (53 per cent) of people aged 65 or older had financial problems because of the changes.
There were about one in seven people aged 60 or older with financial problems, but just under a quarter (26 per cent), were able to meet basic living expenses.
These financial problems are particularly damaging for older Australians, because the cost of providing retirement pensions can be enormous.
If you’re a pensioner with disabilities, you may find it hard to find a job if you want a pension to keep you going.
It can be a very difficult situation for pensioners with disabilities.
We know that older Australians with disabilities are more likely to face barriers to employment.
Our research found that people with disability are more often than not excluded from public services and that this can impact their access to education and other support.
Even if you can afford to pay for your own workplace, it can be tough to find enough to do the work you need to do.
People with disability have been working longer and longer hours for low wages, often because of disability or a mental health condition.
For example, a single mother of two working 40 hours a week for the past 15 years has spent almost half her salary