Urgent call for ‘a new type of pension’ 105

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How wonderful to live in an age where life expectancies are going up and up. And while it’s great to know that medical breakthroughs, green smoothing and quinoa will keep us going well into our eighties and nineties, it does leave us vulnerable to a problem.

Financial experts call it “the longevity risk” and it means we need to save and budget as if we were going to live to a hundred (or even beyond).

Apparently this causes us to save our pennies more conservatively than we possibly need to, reducing our quality of life. Some people may say ‘to heck’ with longevity risk, I’m going to spend my money and rely on the pension when I run out, but for most of us that is a frightening prospect – particularly for those who live in cities where the age pension barely covers the cost of a latte and a power bill. Plus, who knows how much it will be chipped away at between now and then?

But what if you didn’t have to worry about ‘living too long’? What if you knew that you would be looked after well once you hit real old age and could spend what you have up to that point?

That’s exactly what Richard Livingston, founder of financial advice company Eviser says should happen.

“We can keep tinkering with the age pension we’ve got, solve nothing, continuously break promises and bamboozle those trying to do the right thing by being self-funded retirees, but there’s a better way,” he writes in the Sydney Morning Herald.

“We need a new “elderly pension” to provide genuine and generous support for the growing cadre of Australians who will make it well past life expectancy – somewhere in the nineties and beyond.”

Mr Livingstone continues, “Exactly how much an elderly pension should be, or at what exact age it should kick in, is a job for the actuaries. However, it should be set at a more generous level than the age pension, come with a proper standard of health care benefits, have no or only limited means testing and (perhaps most importantly) it should be immune as far as possible from the whims of future politicians.”

What do you think of this idea? Would it make you feel better knowing you’d be well looked after in your 90s and beyond?



Starts at 60 Writers

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  1. This is a breakthrough politicians will never agree to unless it involves themg

  2. Great but who is going to pay, our taxpayers are already buckling under the weight of the burden. Oldies will make sure they spend all of their money so that they will be entitled to this generous scheme just as some are spending their super now to ensure they are eligible for the aged pension.

    5 REPLY
    • @Marilyn Clark, That is Why Pensioners Should get Advice from a Financial Advisor Rather than Centrelink ! I Did Go For a Meeting with One of their Advisors. Who didn’t Give Me Quite The Right Information. They Wan’t You to Spend it all and Become Totally Dependant on them. Not Me ! Yes, it Does Cost Money But Believe Me It Is Well Worth It ! I Worked All My Life and Paid My Taxes and Super, So Why Let them take it all Away from You !

    • That’s a very unkind, uninformed and, quite frankly, stupid comment. Obviously you don’t need any government support and know nothing about why some people need to solely rely on the pension. You seem to forget that we on the age pension paid our taxes for many, many years. And for many reasons beyond our control (and beyond your knowledge). “Oldies will spend all their money”? Where did you get that information from?

    • Joan Windsor just because you didn’t get good advice from the Centrelink advisor don’t tar them all with the same brush. I got excellent advice and not once did he even vaguely suggest that I should “spend it all and become totally dependent on them”. I would be worse off today if I hadn’t spoken to him.

    • Judy Green you are wrong on all fronts, do you follow the comments on this site? Obviously very many rely solely on the pension and I really feel for them and would raise their pension and do anything to make their life easier but on the whole we humans are a greedy lot who will try to get what we can from the poor old taxpayer (who I tirelessly defend) whilst protecting our assets to leave an inheritance for our kids. Absolutely support everyone getting financial advice to protect their funds.

    • Rosemary Miles, I Wasn’t Told I Had to Spend it all. But i Was Given Incorrect Information on How Much i Could have in a Super Fund Before I Went on the Aged Pension ! I am Happy that You Received Good Advice. We all Need that…

  3. Richard Livingston for PM, he is right , we have to struggle for lot of years in poverty if rely only on the pension but sadly under this Government I can’t see it happening

    2 REPLY
    • I can’t see a pension change to an increase above the poverty line in any government in the near future, they have to have the big payout and the perks at the end of their JOB,

  4. Love the idea but this Liberal Government wanted to cut the CPI rise not give us more money and Turnbull is just a puppet and he still has Abbott’s policy’s

    2 REPLY
    • And we are not millionaires like he is. He wouldn’t have any concept of like it is to live on the pension

    • so many in my lifetime have mocked me for buying a house and saving for my retirement ..thats the govts job they say ….HOW IS THAT WORKING FOR THEM>>>?

  5. Pfttt, they will just ignore this guy and if he talks to much about it they will probably jail him for being a terrorist 🙂

  6. Oh what a wonderful thought, however totally unrealistic because our Governments would never ever agree to it, they have to control almost every aspect of our lives or it doesn’t work for THEM.

  7. As a disabled pensioner since having a stroke I’m Atleast $800 a week worse off but life costs me more as I still have all the bills. And I have to pay people to do all the jobs around my house that i can no longer do myself.

    1 REPLY
  8. I don’t see how this is possible. We are being told that simply to fund the age pension in the future will be a struggle. An increased ‘elderly pension’ in the future seems impossible. The only solution that I can see is to raise the age pension age which they are already doing. I think this is pie in the sky.

    2 REPLY
    • debbie bryant you are right the govt faces huge increases in costs but any measures to increase the avaible money is met with rage ..THE GOVT HAS PLENTY OF MONEY……NO THEY DONT ONLY AS MUCH AS ALLOWED BY THE VOTERS

    • Then why are they handing out taxpayers money without asking to these stinking gronks get rid of them who come here and stay on centrelink money forever.

  9. retirement your responsibility NOT the govts …same with child rearing ,house buying and insuring your property SICK OF THIS GOVT SHOULD ECT ECT

    7 REPLY
    • You must be a politition. Is it ok that they get paid huge wages even after they retire or get voted out? No. But look after the elderly, way too hard. Maybe you should realise that wages were very small 20 or more years ago.

    • we have come thru the wealthiest time in australias history …yes wages were small but my first house cost $14000 …1974 ..pollies no longer get life pensions google politicions entitlements and get the truth …i say again the govt is not your parents …

    • How many false profiles have you got. I’ve blocked you twice before. Maybe it’s time you were reported to FB for fake profiles.

    • Ray Chris Russell
      He gets blocked continually bu people because of his abusive and nasty comments. But Graeme Condelykeeps coming back with more profiles.

    • Ignore the sicko there is one in every bunch. He probable lives worse than us this is his only entertainment. Poor fool

    • what a joke can anyone explain how i can prove i have only one profile dob 21/2 45 army number 3788340 check the vietnam honour role also will someone explain how my above post is abusive or nasty .ust facts is that the problem

  10. Now into my eighties costs for medical visits and treatments sure escalate. Private medical insurance is no longer affordable unless you are very wealthy. This is NZ with the rock star economy but health and welfare take a back seat when it comes to government funding. I have even heard the older people saying they have had enough of a life of subsistence. I think the idea he is promoting has a lot of merit.

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