Thursday, April 30, 2009
A decent standard of living for pensioners still in question
Age pensioners may not get a reasonable increase in the age pension sparking concerns that a meagre increase will only go to meet increasing living costs.
“A major concern for COTA NSW is that the possible increase in the pension will only serve to meet increases in the cost of living and not provide enough for pensioners to be lifted above the poverty line,” said Jon Bisset, Executive Director of COTA NSW.
Recent research has shown that single older people have the highest incidence of poverty of any demographic group. Almost a quarter (23.9%) of older Australians and almost half (46.9%) of single age pensioners are living in poverty. Of all Australians living in poverty, 27 per cent are people over the age of 65. (Saunders et al 2008)[i]
These findings were echoed by the OECD report “Growing Unequal” which found that 50percent of Australian single people aged over 65, are living in poverty, the highest in the OECD. [ii]
COTA's nationally have called for the single age pension to increase to 35percent of Male Average Weekly Earnings ($375.30 per week) an increase of $93.85.
Dianna Lee-Gobbitt, a single age pensioner in the private rental market believes an adequate increase is needed for single aged pensioners to keep them above the poverty line.
“I am in the private rental market because there is no affordable housing in my area, you do the math, I receive $683.90 in total per fortnight ($562.90 pension, $5.80 Pharmaceutical Benefits Scheme, $110.20 Rental Assistance). My rent is $460 per fortnight which leaves me with $223.90 per fortnight for everything – water, electricity, telephone, medical, and food.
“To add insult to injury because I worked in the 2007-08 financial year and earned about $5,000 income which took me over the Table of Income threshold (if you earn over $138 gross you lose 40 cents in the dollar of the age pension) and ended up owing Centrelink $1,377 which I am still paying off,” Dianna said.
“We continue to be hopeful that the Henry Tax Review will provide a more holistic response to the issues affecting single age pensioners, especially around the removal of inequities in the system so that they may have a decent standard of living,” Jon said.
Media contact Anne-Marie Elias 0418 236 546.
[i] Saunders, P., Hill, T. and Bradbury, B., 2008, Poverty in Australia: Sensitivity analysis and recent trends’ Report commissioned by Jobs Australia on behalf of the Australian Council of Social Service (ACOSS). SPRC Report 4/08, Social Policy Research Centre, University of NSW.
[ii] OECD, 2008, Growing Unequal report