By CAM LUCADOU-WELLS
PENSIONERS are a mix of distraught and stoic in response to welfare cuts in last week’s Federal Budget.
In response to an ageing population, the government plans to peg the indexing of the pension from 2017, increase the pension age to 70 in 20 years and introduce $10,000 incentives for businesses to employ older workers.
As part of its plan to make the welfare budget “sustainable”; it will spend $146 billion on unemployment benefits, pensions, childcare support and family payments in 2014-’15.
Isaacs MP Mark Dreyfus said more than 23,600 pensioners in his electorate would be affected. Many were already struggling with bills and groceries on a $20,000 annual income, he said.
Mr Dreyfus said he had many calls from concerned pensioners, one doubting she would afford her regular GP visits after the introduction of a $7 co-payment.
“This government continues to put the interests of the wealthiest Australians ahead of our most vulnerable citizens.”
Joan, a pensioner and committee member of Keysborough and District Multicultural Senior Citizens Club, said “you won’t get any complaints from me”.
“It’ll affect me a little bit. Petrol and a few little things will cost more.
“But if we don’t do this, we’ll be like Greece.”
Josie Luppino, president of Noble Park Italian Seniors Citizens Club, said most members were worried about the changes to the pension age.
“Most of us are already 70 but for our children and grandchildren, it’s not really fair to work extra years to get a pension.”
Extra cost burdens, such as rising fuel and electricity prices and GP co-payments, were “stretching us too much”, she conceded.
Council of the Ageing chief executive Ian Yates said the new indexing of the aged pension – $80 a week less in 10 years – would slip older people “back below the poverty line”.
He said if the pension age was to be increased to 70, the government had to ensure jobs were there for older workers.
“Right now almost 200,000 Australians in their fifties and sixties are languishing on the Newstart allowance and many won’t find a job until they are eligible for the age pension.”
He said $10,000 incentives to employ older workers were welcome but wouldn’t counteract age discrimination.
Retraining and more flexible working arrangements for older workers were needed.
