OECD CONFIRMS AUSTRALIA’S PENSION SYSTEM IS TARGETED AND SUSTAINABLE

December 01, 2015


The OECD’s 2015 Pensions at a Glance report - released today - shows that Australia’s pension system is targeted, sustainable and will remain so well into the future.

 

The OECD has once again highlighted the scaremongering by the Liberals on the sustainability of Australia’s pension system.

 

For two years, the Liberals have been lying in order to justify their attack on Australian pensioners.

 

According to this year’s report, Australia spends just 3.5 per cent of GDP on old age and survivor benefits, compared to the OECD average of 7.9 per cent.

 

By comparison, New Zealand spends 4.9 per cent, the United Kingdom 5.6 per cent and the United States 6.7 per cent.

 

The report also uses the Government’s own data from the Intergenerational Report to compare the sustainability of the pension over the next 50 years.

 

Whereas the IGR projects that Australia will spend around 2.7 per cent of GDP in 2055, the OECD average expenditure on pensions is estimated to be around 10 per cent in 2050.

 

New Zealand is expected to spend 7.3 per cent, the United Kingdom 8.1 per cent and the United States 6.1 per cent.

 

These projections reinforce the findings contained in last month’s Melbourne Mercer Global Pension Index which ranked Australia as having the fourth most sustainable pension system in the world. 

 

Australia ranks behind only Denmark, Sweden and the Netherlands.

 

The Liberals’ pension campaign is not backed by the evidence.

 

Instead of trying to improve the lives of Australian pensioners, all the Liberals have done is try to cut the pension.

 

First they tried to cut indexation, a cut that would have meant pensioners would be forced to live of $80 a week less within ten years.

 

Then they did a deal with the Greens to cut the pension for around 330,000 pensioners by changing the assets test.

 

Now they want to whack Australian pensioners with a 15 per cent GST, hitting households by up to $4,000 a year and reducing the living standards of Australian pensioners.

 

Pensioners can’t afford another three years of Malcolm Turnbull’s Liberals.

 

TUESDAY 1 DECEMBER 2015

 

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