Wednesday, May 13, 2009

Pension Reform Welcome

NSW Council on the Ageing welcomes the government’s aged pension reform package announced in the 2009 Federal Budget.

Chief Executive Jon Bisset said that years of unfair treatment for single age pensioners had been recognised and large steps taken to rectify it.

The government has delivered on the long standing calls by COTA and other seniors’ organisations for the single pension to be increased to two thirds the couple rate.

In addition couples will receive an extra $10.14 per week ($5.07 each). All pensioners will receive at least that increase.

There will disappointment among many pensioners that these increases are not greater, but we have to say they are a good start in difficult economic times and we have a good base now to argue for better pensions as the economy revives.

The new pension system is simpler, which is most welcome, with the rolling together of various different supplements into one.

We particularly welcome the new Work Bonus which creates incentives for pensioners to continue working on a part-time basis and benefit financially.

The proposed increase of the pension age to 67 years between 2017 and 2023 is fair provided that the government in the meantime redoubles efforts to address mature age unemployment and age discrimination in the workforce.