No one could argue that the Age Pension in Australia provides a decent standard of living to those who depend on it. But there has been a great deal of disinformation to paper over this reality. Now that the nation has entered a federal election phase, this is as good a time as any to tell a few truths.

To begin with, Australia is a wealthy enough country, up there with the rest of the western nations grouped in the Organisation for Economic Cooperation and Development (OECD). We have 23 percent of those over 65 living in poverty according to the OCD figures, compared to 14 percent for Germany, and 13, 13, 12, and 9.4 percent for the United Kingdom. Canada, and Sweden.

It’s hard to argue against this. Seniors are getting a raw deal when it comes to the age pension. The OECD figures say that the Australian age pension is the second lowest, around 33 percent of average earnings, when for other OECD nations it averages around 61 percent.

This stark picture contrasts with the narrative long favoured by politicians and sections of the media that have long insisted seniors, including those on the age pension are well looked after. It counters the other assertion that seniors are a burden on younger generations.

The Australian economy might have its troubles. So do those of the rest of the OECD nations. Some of them are significantly worse off. The difference is in attitude. Seniors are valued more there than they are here. It’s a matter of what are the national priorities.

Superannuation doesn’t save the day. Most retiring now with superannuation, come out to around $370,000. This won’t last long. Future retirees will have more, but not enough to last the next couple of decades. A sobering reality is that the disproportionate payout form Australia’s superannuation funds go to those on the top income brackets. Exactly what this amounts to, is not available from government sources nor from the OECD.

The Graph below shows that Few across all age groups will accumulate anywhere near $3 million worth of superannuation on retirement. These are from older on the left to younger on the right.

The next graph shows that the richest get the biggest payouts and the poorest the smallest.

The current government has at least tried to balance this out a bit more fairly, by trying to impose a 30 percent tax rate on any part of a payout that exceeds $3 million. This has been falsely called a tax on all superannuation payouts by representatives of the well-heeled and media outlets like The Australian. The point is that it remains well below the top tax income bracket of 45 percent. Secondly, it counters some of the benefits enjoyed by the few and denied to the rest.

Australia must turn this around. This begins with recognition of the contribution to the Australian economy and has been made over a lifetime by those who have now retired. They built the nation. Recognition must be given to the fact that they continue to contribute their time and effort, often as unpaid volunteers. Imagine where Australia would be without this contribution.
Australia must honour its obligations under Article 125.1 0f the International Covenant of Economic, Social, and Cultural Rights, to which our nation is a signatory. This is mirrored in the policy of the Attorney-General’s Department (Right to an Adequate standard of living, including food, water, and housing).

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Given the neglect in last month’s budget of those who depend on Centrelink payments, the continuing lag far behind. So are the real in wages of many workers. This and the rapid rise in prices are the reasons why the deepening cost of living crisis is a living reality for most of Australia. We don’t need a pile of statistics to tell us this.

Australia is approaching a point, where we must consider the road on which we are traveling. Do we want to live in a society and economy that values us as human beings? Or alternatively, should we continue where human beings are treated merely as a resource to be exploited and commodities to be bought and sold? The choice is between raw capitalism, with its celebration of personal greed, or lifting all of us towards a better and fairer future.

How a society treats others, especially those who are worse off, says a great deal about its character and potential to move forward successfully in difficult times. And we are in difficult times, which are set to get even worse. Now is a good time to decide which way to go.

Making those at the top of the pile much richer than they already were, has done nothing to bring about a more successful economy and social inclusiveness. It has done the opposite.

Life proves that economic policy focusing on giving to the investor is a false solution makes matters much worse. Sure. Investment is necessary. But it must go to where it’s needed, and the largely unrestricted market has failed to deliver this. Continuing with this will continue the failure.

Investment in people is what is important. So they can participate and contribute. Investment in infrastructure that meets the needs of the day, is the way forward to a stronger, fairer, and more participatory economy and society. Setting the foundations for new industries of the future, which are sustainable and create real jobs is another urgent need.

The Anglicare Australia’s cost-of-living index released on Thursday 13 June 2024, doesn’t tell us anything we didn’t know in general terms. But it does back how badly Australians depending on Centrelink payments are doing with solid evidence. The report shows this this part of Australia doesn’t have enough to meet basic needs like adequate food, groceries, clothing, transport. or a decent home.

A single person living in a shared house is left with $127 a week after the most basic essentials have been taken care of. A single parent is worse off, with $24, a little over $3 a day.

It has never been this bad. Rising poverty is a contemporary reality, and with it, grows the number of sleeping rough, and the less visible inadequately housed. A much bigger part of Australia is cutting back on discretionary spending, because they can now only afford the basics. How far can this go before something far worse happens?

The Robodebt inquiry has delivered its report and ignored that the imposition of unwarranted debts on so many of those depending on payments from Centrelink was no accident and a deliberate policy to punish the poor. It has attracted enormous criticism and calls for a new inquiry. To say there should be is a no brainier. It also reveals that our political elite lacks empathy and has a different agenda than serving justice.

Why not start pulling in the opposite direction by insisting that the right to an acceptable standard of living is a basic human right and applying it? All Centrelink benefits and low wages should be lifted out of poverty to the minimum wage to meet this. All would be encouraged to understand that a society where we look after each other is a better one to live in for all of us.

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The announced new age pension rise coming in effect on 20 March is being used to pretend that this group of pensioners are getting good deal. The truth is that they are still being cheated. The new base rate of $510 per week, or $8.80 for singles and $14.70 for couples, does little to address years of neglect. This miserly rise is an equivalent of two cups of coffee and a newspaper and does little to correct years of decline.

It’s true that those with disability, single parents, and the unemployed get even less. This doesn’t justify the mistreatment of age pensioners. But it does reveal the mind of government, which is, that those on Centrelink payments don’t matter. Pensioners are also being cruelly marginalised in every way.

All this is being covered by gross misinformation.

Ever since 2008 and the current adjustment system, the twice yearly adjustments have been so underpaid that age pensioners are now shortchanged thousands of dollars every year. The results have been increasing poverty, negative impacts on health, rising depression, and exclusion from participation in the community. This is wrong.

The formula used to calculate the six monthly increase is ambiguous and subject to manipulation, and successive governments have been guilty of using the opportunity to deny the proper increases.

Underpayment is helped with the use a special for purpose consumer price index weighted around wrong assumptions about older people. These include that housing needs only cost around 22 percent of income, they don’t pay for utilities, and their transport costs are negligeable. In short, older people are seen to need less money than others to enjoy an acceptable standard of living.

Adding $7.05 a week for utilities and free public transport at the weekend doesn’t fix the problem.

Dismal treatment like this is worse in the midst of a rapidly rising cost of living.

Under its own guidelines, the Australian government has an obligation to ensure a standard of living to the level of acceptable community standards. This is not being met.

Age pensioners are angry, feel cheated, disrespected, and discarded. After all, this is the generation that spent a lifetime working to build this country and paid tax. The nation owes them the right to pend the last part of their life in dignity and reasonable comfort. In fact, many volunteer their time and contribute immensely to keep the economy and society going. Instead of valuing this, older people are treated as a burden that shouldn’t be there.

Older people aren’t even consulted about matter that affect the conditions in which they are compelled to live.

Fair Go For Pensioners will continue to fight for a better deal. We will tell the truth about what’s going on, and campaign to pressure for change.

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