PENSION CUTS TO HIT HARDEST ON PEOPLE ON BELOW AVERAGE EARNINGS

June 19, 2015


Independent analysis provided to the Senate Inquiry into the Liberal/Green pension cuts shows the impact of these cuts will fall hardest on people with below average incomes.

This directly contradicts the Government’s claims that the changes will only affect the well off.

 

As Labor has been saying all week, these cuts are a direct attack on middle Australia.

 

Over the long run, there are more people affected on below average incomes that above, the analysis shows.

 

For example, a pensioner with $500,000 in assets achieving a 5 per cent return is on an annual income from superannuation of only $25,000.

 

This pensioner will lose $8,210 in pension payments every year because of these cuts.

 

A couple with a superannuation balance of $800,000 achieving a return of 5 per cent would have an income of $20,000 each from superannuation.

 

They now stand to lose around $14,000 or $7,000 each every year.

 

These people are not rich, as the government would have you believe.

 

They are Australians who have worked hard and saved hard for their retirement.

 

The analysis also indicates that the impact of these changes will be most significant on women:

 

“Under existing policy settings we expect half of all single women won’t achieve a comfortable retirement. The Bill’s proposed assets test change increase this to eight in ten single women”

 

INDUSTRY SUPERANNUATION – SUBMISSION TO SENATE INQUIRY

 

While the Government would like to portray this measure as only affecting millionaires, the reality is this pension cut is an attack on middle Australia.

 

FRIDAY, 19 JUNE 2015

 

Download PDF