Pension changes are coming…and we’re not going to like it 75



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Every year, in March and September, the age pension is indexed, meaning it increases by around $15-20 a week or fortnight. This may not seem like a lot but when you’re living week to week like most of us pensioners are, it is a little bit of a luxury. But the twice-yearly indexation could be changing…and we might not like it.

The Federal Government has made no secret of the fact it wants to change the way the age pension is indexed, changing it from aligning with wages to aligning with inflation – the latter would mean our pension could stay the same for over a year despite bi-annual increases to the minimum wage.

And unfortunately, if this goes through the Senate in 2017 like it has been proposed, pensions won’t go back to the wages type of indexation until 2028, when it’s predicted we will return to surplus.

Social Services minister Scott Morrison said this was an achievable goal and it was sensible to do it down the track. According to ABC, he said, “The Government’s intentions here are very clear and they’re mapped out in [the budget] which represents the Government’s position”.

But crossbenchers aren’t as willing to budge and are against changes to the pension’s indexation, including Motoring Enthusiast Party senator Ricky Muir. He said he was “very concerned” about the proposed changes and worried it would cause pensioners financial difficulty.

“If the Government genuinely needs to cut spending or raise revenue, they need to find ways that are fair and reasonable, not targeted at those genuinely doing it hard,” Mr Muir said in a statement.

Palmer United Party Senate leader Glenn Lazarus even went so far as to say “Hockey and Abbott want to cut the pension” on Twitter.

Labor’s Families spokeswoman, Jenny Macklin also opposed the proposed cuts and said, “The only way to protect pensioners is to scrap the proposed cuts to indexation entirely. These cuts will create an underclass of pensioners in Australia”.

“This confirms what Labor has been arguing for nearly a year: if Tony Abbott and Joe Hockey get their way, millions of pensioners will be driven into hardship and poverty,” she said.


What do you think? Do you think changing the way the pension is indexed will create hardship? Or should pensioners head back to part time work to supplement their pension? Tell us below..

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  1. They could cut their own overly generous pensions first and save more. They could also cut middle class welfare and big business welfare before attacking pensioners. If they want a way to piss off people who may have voted for them in the past and won’t in the future, this is the way to do it.

    4 REPLY
    • IIIII worked from 15 to 65 years of age, so I have put in half a century of work, employed men and women, trained apprentices at least 10 in that time, brought up 2 Australian kids who have like me never claimed the dole in their life, now is my time to relax and enjoy my retirement.
      If the government want to cut pensions start with the dole bludgers, illegal immigrants and the so called disabled pensioners on “stress” related disability that are now fighting in middle east, the muslims who are virtually unemployable because they feel the need to stop work and pray 6 times a day and have Friday off to attend the mosque.
      I warn all parties leave us alone we can make or break you at the polling booth if you upset us too much, be warned!!!!

      2 REPLY
      • Well said Peter Pitchag and I agree with 100%.

      • Yes Peter I am inclined to agree with you. I started work at 15yrs & retired last Xmas at 71 yrs. I have worked extremely hard all my life, and bought up five children whom all have jobs. We have worked and not once claimed for any sort of payment, even though I was single for part of that time. Yes I think that the older people who have worked and saved hard all their lives are now wanting to reap , a bit of what they have sown and Peter you could be right in saying “I warn all parties leave us alone we can make or break you at the polling booth if you upset us too much, be warned!!!! “

        1 REPLY
    • Totally agree Alisa. I seem to remember that they granted themselves a massive pay rise very soon after coming to power. Since then they’ve been trying to cut pensions and military pay. A cut to their own pay would be nice but a greater benefit would be to cut politicians pensions and allowances.Why do we need to give an ex prime minister a secretary and a car? If they want to cut then they need to lok at themselves and their mates FIRST.

  2. It’s really annoying that all the pensioners have to go through this what the government should be doing is getting all these lazy ones off the dole and the cheats better yet let Abbott and Hockey take a substantial pay cut send less overseas after all charity begins at home……..
    Leave the pensioners alone..

    2 REPLY
    • You are so right ,let the pollies set the example take pay cut by 25% and get rid of all the perks that go with the job.
      Show us all they are prepared to do the heavy lifting in stead of the pensioners.

  3. Why should the pensioners have to foot the bill for the governments mismanagement of where funds go.
    Shouldnt they be looking at money handed out to immigrants that come to Australia and just bludge !
    By all means welcome immigrants that have good intentions and try to get into the work force. But there are so many coming into our country draining the governments funds. Pensioners who have paid taxes all their lives should not be penalized !

  4. Of course changing pension indexation will cause hardship. What Hockey and Abbott forget is that the majority of these pensioners didn’t have the luxury of superannuation. In addition to this they had the GST imposed on them in the twilight of their working years.

    2 REPLY
    • I struggle now. Cut the Pollies entitlements, not ours. They dont get cuts, but theirs increases.

    • In 1945 a pension fund was set up and every Australian worker contributed 7.5% of their gross income into it, that 7.5% levy was used to pay pensions.
      This fund was to be specifically owned by the workers and government could not meddle with it or borrow from it. Money could only be paid out as an indexed and non-means tested pension on retirement age, 65 for men and 60 for women.
      In 1976 the historical balance of that pension money was taken from the workers by the government of the day and put into consolidated revenue.
      Unfunded ex-politicians’ a huge pensions are paid out of consolidated revenue which perhaps explains why a certain section of people now have five years of their legal pension diverted into the $100,000 pensions plus perks of retired and/or sacked ex politicians, many of them only in their 40’s.

  5. I struggle now. Cut the Pollies entitlements, not ours. They dont get cuts, but theirs increases.

  6. Why cut from those who can least afford it, surely there are other ways to fix things without making more hardships for those who are unable to get out and earn for themselves.

  7. Link the age pension to the parliamentary pension and I will accept any rise or fall that happens.
    Abbott needs to understand that elections are 18 months away and the number of pensioners is growing and we all vote.

  8. VOTE OUT :- those that wish and plan to ” SCREW US OLD AGE PENSIONERS ” out of our meagre Pension ……and stop the stupidity of paying married couple less than single pensioner or we will all end up in ” Separation ” or divorce …living accommodation ….Wake up a smell the coffee you clowns in power …!!!

  9. Taxpayers pay $270 a night for Mr Hockey to stay in a home owned by his wife, while he attends Parliament. So far we have paid $108,000 towards his wife’s mortgage. Now that’s entitlement!

    2 REPLY
    • I agree, this should not be happening. If a spouse of some parliamentarian owns a home in the area visited they should stay there or pay for their accommodation themselves. How much is a pensioner subsidised when they have to take accommodation to have medical treatment at a hospital in the city? Perhaps the politicians should consider that when handing out allowances for overnight stays.

    • agree with your remarks. Why should we pay for him to stay in his wife’s house. Nobody pays our mortgage. The Liberals are afraid that their perks will be stripped! As they should be. Us Pensioners and lower paid don’t get any perks. Most of us didn’t have any super or very little so couldn’t afford to keep ourselves in retirement. Why should we spend our later years worrying where the next meal will come from

      1 REPLY
      • If the politicians had any morals at all they would not even consider being paid to stay in houses owned by their families.

  10. If Labor didn’t leave us with this huge debt we would’t be in this position.

    3 REPLY
    • sorry but this debt has been more than doubled since the liberals came into power 18 months ago!!!

    • Clearly Ann you haven’t seen the Senate Estimates video of Penny Wong questioning the Department of Treasury secretary John Fraser. Regarding Barnaby Joyce saying “At a point in the future we will go broke?” Is this factually accurate? No.
      Do you think it is responsible and accurate to say the country has been bankrupted? – No.
      Is it factually accurate when Joe Hockey says we are subservient to the banks and the rest of the world? – No.
      Why do Liberals persist with these lies when videos clearly show the Treasury Dept Secretary who knows a bit about the condition of Australian finances denies these accusations.

    • It is not the mismanagement of the Labour Government but the greed of the Liberals that is the issue

  11. The piddling little amount that is given indexed to pensioners is so so tiny compared to what the tax cheats, big overseas companies and centrelink frauds are doing… They just want to be shown to be doing something without doing the hard yards… Investigate further and also that means immigrants too, that are doing cash jobs and cash businesses and receiving centrelink.

  12. Some pensioners are unable to work due to health and i think the government need to look at the benefits that are paid to former politicians

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