Retiring comfortably is on the minds of nearly everyone planning for the future. But how much money you need each year to do so, or what money you’ll have access to, can depend heavily on the country you’re in.

With that in mind, it looks like the age pension is going to become a less significant portion of Australia's Gross Domestic Product (GDP) in the coming decades, according to a new report.

The report, titled the 2023 Intergenerational Report, has stated that spending on the aged pension will drop from 2.3 to two per cent of GDP by the time the country reaches the 2060s.

Aged pension spending will drop in 2060. Credit: Pixabay/Pexels

This is despite projections that the number of people aged over 65 will double to nine million, and those aged over 85 will triple.

But why is that the case when the number of pensioners is increasing?

Well, the reason is that the rising superannuation savings pool is set to increase to 220 per cent of GDP by 2060, with the number of age pensioners expected to fall by 15 per cent.

There is approximately $3.5 trillion in the super assets pooled held by around 17 million Australians As the super pool continues to rise, fewer Australian seniors will be eligible for age pension payments.

By this projection, the country is set to have the lowest proportion of public spending on pensions among the Organisation for Economic Cooperation and Development (OECD) nations by 2035.

Treasurer Jim Chalmers described the superannuation system as 'intergenerational genius': ‘Super is delivering on its promise–providing a better retirement for more Australians and a better outcome for the budget over the next 40 years,' he said.

As Assistant Treasurer Stephen Jones said, 'More people are going to expect more. Superannuation is ensuring that those increased expectations and the increased notions about what it is to live a dignified retirement is going to be met.'

You can watch an ABC News In-depth report about this topic here:

​

In related news, the Aged Community Care Providers (ACCPA) has proposed changes to the superannuation savings, which they said should be set aside to help improve standards in aged care and address the sector’s funding shortages.

Members have expressed their opinion about this proposal, with Member @JG48 saying: ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’

Member @Roscobro commented: ‘Leave our superannuation alone.’

‘The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.’ Member @Januvia1952 pointed out.

Key Takeaways

• Spending on the aged pension in Australia is expected to decline, despite a doubled ageing population, due to increased superannuation savings.
  
• By the 2060s, the number of people aged 65 and over is expected to double to nine million, while those aged over 85 will triple.
  
• The number of people on the aged pension is projected to decrease by 15 per cent as super balances rise to almost 220 per cent of GDP, leading to Australia having the lowest proportion of public spending on pensions among OECD nations by 2035.
  
• The Treasurer, Jim Chalmers, applauds the superannuation system for providing a better retirement for more Australians and a better budget outcome over the next 40 years.
  

What do you think of the 2023 Intergenerational Report, members? Share your thoughts in the comments below!

 

[Lynjw]

Retiring comfortably is on the minds of nearly everyone planning for the future. But how much money you need each year to do so, or what money you’ll have access to, can depend heavily on the country you’re in.

With that in mind, it looks like the age pension is going to become a less significant portion of Australia's Gross Domestic Product (GDP) in the coming decades, according to a new report.

The report, titled the 2023 Intergenerational Report, has stated that spending on the aged pension will drop from 2.3 to two per cent of GDP by the time the country reaches the 2060s.

View attachment 28261

Aged pension spending will drop in 2060. Credit: Pixabay/Pexels

This is despite projections that the number of people aged over 65 will double to nine million, and those aged over 85 will triple.

But why is that the case when the number of pensioners is increasing?

Well, the reason is that the rising superannuation savings pool is set to increase to 220 per cent of GDP by 2060, with the number of age pensioners expected to fall by 15 per cent.

There is approximately $3.5 trillion in the super assets pooled held by around 17 million Australians As the super pool continues to rise, fewer Australian seniors will be eligible for age pension payments.

By this projection, the country is set to have the lowest proportion of public spending on pensions among the Organisation for Economic Cooperation and Development (OECD) nations by 2035.

Treasurer Jim Chalmers described the superannuation system as 'intergenerational genius': ‘Super is delivering on its promise–providing a better retirement for more Australians and a better outcome for the budget over the next 40 years,' he said.

As Assistant Treasurer Stephen Jones said, 'More people are going to expect more. Superannuation is ensuring that those increased expectations and the increased notions about what it is to live a dignified retirement is going to be met.'

You can watch an ABC News In-depth report about this topic here:

​

In related news, the Aged Community Care Providers (ACCPA) has proposed changes to the superannuation savings, which they said should be set aside to help improve standards in aged care and address the sector’s funding shortages.

Members have expressed their opinion about this proposal, with Member @JG48 saying: ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’

Member @Roscobro commented: ‘Leave our superannuation alone.’

‘The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.’ Member @Januvia1952 pointed out.

Key Takeaways

• Spending on the aged pension in Australia is expected to decline, despite a doubled ageing population, due to increased superannuation savings.
• By the 2060s, the number of people aged 65 and over is expected to double to nine million, while those aged over 85 will triple.
• The number of people on the aged pension is projected to decrease by 15 per cent as super balances rise to almost 220 per cent of GDP, leading to Australia having the lowest proportion of public spending on pensions among OECD nations by 2035.
• The Treasurer, Jim Chalmers, applauds the superannuation system for providing a better retirement for more Australians and a better budget outcome over the next 40 years.

What do you think of the 2023 Intergenerational Report, members? Share your thoughts in the comments below!

Pathetic. Maybe compulsory euthanasia at a set age would save their greedy expenditure

 

[mustang]

I am 69 and when superannuation came out I wasn't working, but i did manage to find work once i retired I only had $20,000 in super, which is gone now so I live on my disability pension, the govt is only good for their payments and not for the people, wonder if they would be able to live on a pension and pay rent etc.they should give it a try for 3 months and see how they would live

 

[bagsie]

Retiring comfortably is on the minds of nearly everyone planning for the future. But how much money you need each year to do so, or what money you’ll have access to, can depend heavily on the country you’re in.

With that in mind, it looks like the age pension is going to become a less significant portion of Australia's Gross Domestic Product (GDP) in the coming decades, according to a new report.

The report, titled the 2023 Intergenerational Report, has stated that spending on the aged pension will drop from 2.3 to two per cent of GDP by the time the country reaches the 2060s.

View attachment 28261

Aged pension spending will drop in 2060. Credit: Pixabay/Pexels

This is despite projections that the number of people aged over 65 will double to nine million, and those aged over 85 will triple.

But why is that the case when the number of pensioners is increasing?

Well, the reason is that the rising superannuation savings pool is set to increase to 220 per cent of GDP by 2060, with the number of age pensioners expected to fall by 15 per cent.

There is approximately $3.5 trillion in the super assets pooled held by around 17 million Australians As the super pool continues to rise, fewer Australian seniors will be eligible for age pension payments.

By this projection, the country is set to have the lowest proportion of public spending on pensions among the Organisation for Economic Cooperation and Development (OECD) nations by 2035.

Treasurer Jim Chalmers described the superannuation system as 'intergenerational genius': ‘Super is delivering on its promise–providing a better retirement for more Australians and a better outcome for the budget over the next 40 years,' he said.

As Assistant Treasurer Stephen Jones said, 'More people are going to expect more. Superannuation is ensuring that those increased expectations and the increased notions about what it is to live a dignified retirement is going to be met.'

You can watch an ABC News In-depth report about this topic here:

​

In related news, the Aged Community Care Providers (ACCPA) has proposed changes to the superannuation savings, which they said should be set aside to help improve standards in aged care and address the sector’s funding shortages.

Members have expressed their opinion about this proposal, with Member @JG48 saying: ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’

Member @Roscobro commented: ‘Leave our superannuation alone.’

‘The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.’ Member @Januvia1952 pointed out.

Key Takeaways

• Spending on the aged pension in Australia is expected to decline, despite a doubled ageing population, due to increased superannuation savings.
• By the 2060s, the number of people aged 65 and over is expected to double to nine million, while those aged over 85 will triple.
• The number of people on the aged pension is projected to decrease by 15 per cent as super balances rise to almost 220 per cent of GDP, leading to Australia having the lowest proportion of public spending on pensions among OECD nations by 2035.
• The Treasurer, Jim Chalmers, applauds the superannuation system for providing a better retirement for more Australians and a better budget outcome over the next 40 years.

What do you think of the 2023 Intergenerational Report, members? Share your thoughts in the comments below!

 

[bagsie]

When the vast majority of wealth is held by a minority who pay minimal tax, what chance have we got.

 

[Abby2]

I apologize for getting old

You should not have to Jethro, it is our Government that should be apologizing

 

[DrivingGirl]

Mr Chalmers's super contributions are as follows:

What is the rate of member contributions?​

Contributions are a fixed percentage of:

1. parliamentary allowance; and
2. salary for Ministers of State; and
3. allowance by way of salary for office holders.

The contribution rates are 11.5% for the first 18 years service and 5.75 % thereafter.

Members of the PCSS are unable to make salary sacrifice superannuation contributions.

Parliamentary Contributory Superannuation Scheme | Department of Finance

Information Pamphlet The legislative basis for the Scheme is the Parliamentary Contributory Superannuation Act 1948 (the PCS Act

www.finance.gov.au

I agree that his salary is most likely higher than that of someone on an average salary, but I would bet that when he leaves parliament, he will have no problems getting much higher paid jobs than what he has now. Here is some information about parliamentary salary increases that might be of interest:

In its 2020 Remuneration Review Statement the Tribunal decided to provide no adjustment to remuneration for public office in its determinative jurisdiction from 1 July 2020.

On 10 June 2021 the Tribunal notified its decision to determine no adjustment to remuneration for public offices in its jurisdiction with effect from 1 July 2021.

Remuneration Tribunal (Members of Parliament) Determination 2020 and Remuneration Tribunal (Members of Parliament) Determination 2021 put the decisions into effect. The Tribunal issued a report on ministerial salary in July 2021 that provided no alterations to the existing percentage levels.

On 13 June 2022 the Tribunal decided an increase of 2.75 per cent for public offices in its jurisdiction with effect from 1 July 2022. The Tribunal gave effect to this increase from 1 July 2022 through the Remuneration Tribunal (Members of Parliament) Determination 2022. The base salary increased from $211,250 to $217,060.

The Tribunal issued a report on ministerial salary in July 2022 that provided no alterations to the existing percentages levels.

The separate appendix table to this quick guide, Remuneration of members of parliament, parliamentary office holders and ministers of state, provides the base salary for members of parliament as well as salaries of office for ministers and parliamentary officer holders.

2022 Parliamentary remuneration and business resources: a quick guide

Updated 11 November 2022 PDF Version [526KB] Cathy Madden and Deirdre McKeown Politics and Public Administration Section Introduction In 2017 the Turnbull Government introduced the most extensive changes to parliamentary entitlements since the current system commenced in 1990

www.aph.gov.au

This is not the point!! I don’t care about Jim Chalmers pension I care about mine and everyone else in Australia over 65 who find themselves on a financial crisis not of their own making!

 

[Squizzy1]

Retiring comfortably is on the minds of nearly everyone planning for the future. But how much money you need each year to do so, or what money you’ll have access to, can depend heavily on the country you’re in.

With that in mind, it looks like the age pension is going to become a less significant portion of Australia's Gross Domestic Product (GDP) in the coming decades, according to a new report.

The report, titled the 2023 Intergenerational Report, has stated that spending on the aged pension will drop from 2.3 to two per cent of GDP by the time the country reaches the 2060s.

View attachment 28261

Aged pension spending will drop in 2060. Credit: Pixabay/Pexels

This is despite projections that the number of people aged over 65 will double to nine million, and those aged over 85 will triple.

But why is that the case when the number of pensioners is increasing?

Well, the reason is that the rising superannuation savings pool is set to increase to 220 per cent of GDP by 2060, with the number of age pensioners expected to fall by 15 per cent.

There is approximately $3.5 trillion in the super assets pooled held by around 17 million Australians As the super pool continues to rise, fewer Australian seniors will be eligible for age pension payments.

By this projection, the country is set to have the lowest proportion of public spending on pensions among the Organisation for Economic Cooperation and Development (OECD) nations by 2035.

Treasurer Jim Chalmers described the superannuation system as 'intergenerational genius': ‘Super is delivering on its promise–providing a better retirement for more Australians and a better outcome for the budget over the next 40 years,' he said.

As Assistant Treasurer Stephen Jones said, 'More people are going to expect more. Superannuation is ensuring that those increased expectations and the increased notions about what it is to live a dignified retirement is going to be met.'

You can watch an ABC News In-depth report about this topic here:

​

In related news, the Aged Community Care Providers (ACCPA) has proposed changes to the superannuation savings, which they said should be set aside to help improve standards in aged care and address the sector’s funding shortages.

Members have expressed their opinion about this proposal, with Member @JG48 saying: ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’

Member @Roscobro commented: ‘Leave our superannuation alone.’

‘The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.’ Member @Januvia1952 pointed out.

Key Takeaways

• Spending on the aged pension in Australia is expected to decline, despite a doubled ageing population, due to increased superannuation savings.
• By the 2060s, the number of people aged 65 and over is expected to double to nine million, while those aged over 85 will triple.
• The number of people on the aged pension is projected to decrease by 15 per cent as super balances rise to almost 220 per cent of GDP, leading to Australia having the lowest proportion of public spending on pensions among OECD nations by 2035.
• The Treasurer, Jim Chalmers, applauds the superannuation system for providing a better retirement for more Australians and a better budget outcome over the next 40 years.

What do you think of the 2023 Intergenerational Report, members? Share your thoughts in the comments below!

From the responses I have read from those complaining about the capping of the 15% tax on super over $3m, it appears no one by 2060 will need an age pension.

 

[GillyH]

Not everyone has super their reliance is only the pension when I retired I didn't have much super at all

In the UK, they have planned a lot better than we have. My parents 83/86 both contributed towards their pension scheme, as soon as they started working. Mum didn't get hers as she only worked for 5 years. The requirement is 7 years. We are behind the 8 ball here in Australia only recently our government has started upping our super contributions. Before you could cash in your super years ago, then COVID hit & people were taking out $10-20,000 of their super. The ones that weren't in financial hardship got found out.
Why do our politicians have the opportunity to earn alot & contribute towards their super but also get a government super and all the other perks when they retire???
I am close to retirement age, I don't have a huge super, working in physical low paying jobs. My body is tired now. I may have to rely on the working past retirement incentive to get by.

Not everyone has super their reliance is only the pension when I retired I didn't have much super at all

 

[Trudi]

If you have lived in Australia your whole working life - have stayed married to the same person your whole life - have had no major out of pocket health costs your whole life - have been consistently employed your whole life- then what you say is true
How many of us fall into that idyllic landscape ?????!

I arrived in Australia in 1969 aged 23 with a not quite 3 year old son. I married a year later and had two more children. From 1970 to 1974 we lived at a mine where there were no jobs for me, then we moved to Albany in WA. I immediately started to work - my youngest was then 6 months old and I was constantly bombarded with comments that I had no right to work as I was married. I shrugged off those comments and ignored the idiots voicing them.

My marriage ended in 1981 and I was lucky to have a full-time job and just enough for a deposit on a modest home for the children and myself. There were no child support payments from the ex.

A few years later I sold the house and moved to Perth, where I had a much larger home built in 1988. I also re-married and had another child at the age of 43. That marriage lasted two years and I was almost bankrupt at the end.

So I moved interstate, bought another house in SA and later a unit and townhouse, before finally building a home in Canberra in 2008.

I have sold the unit and townhouse since but still have my houses in WA and in SA. I am also in receipt of a superannuation pension of not much more than the single age pension.

As the saying goes, when the going gets tough, the tough get going. Since I have no relatives in Australia other than my children and grandchildren, I had no choice but to get strong enough to weather life's ups and downs. My children wholly depended on me.

Throughout those years, I changed jobs on quite a few occasions and studied accounting inbetween.

 

[Trudi]

This is not the point!! I don’t care about Jim Chalmers pension I care about mine and everyone else in Australia over 65 who find themselves on a financial crisis not of their own making!

If you care to read my comment again, you will find that I responded to another member who whinged that Jim Chalmers is on a privileged super scheme compared to other workers. Jim Chalmers was elected in 2013 which means he receives the same employer super contributions as every other worker in Australia - namely 11.5%!

If he leaves politics, I would imagine that he can easily get a job at a much higher salary than that of a Minister!

 

[Maurice_McGahey]

Retiring comfortably is on the minds of nearly everyone planning for the future. But how much money you need each year to do so, or what money you’ll have access to, can depend heavily on the country you’re in.

With that in mind, it looks like the age pension is going to become a less significant portion of Australia's Gross Domestic Product (GDP) in the coming decades, according to a new report.

The report, titled the 2023 Intergenerational Report, has stated that spending on the aged pension will drop from 2.3 to two per cent of GDP by the time the country reaches the 2060s.

View attachment 28261

Aged pension spending will drop in 2060. Credit: Pixabay/Pexels

This is despite projections that the number of people aged over 65 will double to nine million, and those aged over 85 will triple.

But why is that the case when the number of pensioners is increasing?

Well, the reason is that the rising superannuation savings pool is set to increase to 220 per cent of GDP by 2060, with the number of age pensioners expected to fall by 15 per cent.

There is approximately $3.5 trillion in the super assets pooled held by around 17 million Australians As the super pool continues to rise, fewer Australian seniors will be eligible for age pension payments.

By this projection, the country is set to have the lowest proportion of public spending on pensions among the Organisation for Economic Cooperation and Development (OECD) nations by 2035.

Treasurer Jim Chalmers described the superannuation system as 'intergenerational genius': ‘Super is delivering on its promise–providing a better retirement for more Australians and a better outcome for the budget over the next 40 years,' he said.

As Assistant Treasurer Stephen Jones said, 'More people are going to expect more. Superannuation is ensuring that those increased expectations and the increased notions about what it is to live a dignified retirement is going to be met.'

You can watch an ABC News In-depth report about this topic here:

​

In related news, the Aged Community Care Providers (ACCPA) has proposed changes to the superannuation savings, which they said should be set aside to help improve standards in aged care and address the sector’s funding shortages.

Members have expressed their opinion about this proposal, with Member @JG48 saying: ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’

Member @Roscobro commented: ‘Leave our superannuation alone.’

‘The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.’ Member @Januvia1952 pointed out.

Key Takeaways

• Spending on the aged pension in Australia is expected to decline, despite a doubled ageing population, due to increased superannuation savings.
• By the 2060s, the number of people aged 65 and over is expected to double to nine million, while those aged over 85 will triple.
• The number of people on the aged pension is projected to decrease by 15 per cent as super balances rise to almost 220 per cent of GDP, leading to Australia having the lowest proportion of public spending on pensions among OECD nations by 2035.
• The Treasurer, Jim Chalmers, applauds the superannuation system for providing a better retirement for more Australians and a better budget outcome over the next 40 years.

What do you think of the 2023 Intergenerational Report, members? Share your thoughts in the comments below!

" ... ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’ ..."
Where DO you get your information from? Have you been listening to that Sky News lot again? These are the facts -

1946 Labor Prime Minister Ben Chifley watched what Canada, New Zealand and the United Kingdom were doing about their WWII veterans returning home, mentally scarred and possibly to jobs that were now being done by women. The USA was "letting the market take care if itself". They had done the same through the Great Depression and Australia had followed suite. The result of that was that the USA had a crime wave like nothing comparable in history and Australia had young men called "swaggies" walking homeless around getting small jobs for minimal pay until WWII started to suck them up as cannon fodder.

1947 - Chifley's Labor Government reached agreement with the then Opposition Leader Bob Menzies and the Social Services Consolidation Act 1947 was passed. Menzies also saw the impending tragedy as battle hardened men came back to Australia to the possibility of unemployment. As it fortunately turned out, Australia undertook huge post war programs such as the Snowy Mountains Project and there was plenty of work for all able bodied people and the European immigrants that also arrived.

The Social Services Consolidation Act 1947 took 7.5% of PAYE tax and company profits tax and fed it into a trust fund. Unfortunately, that trust fund was not put to a general referendum so that it could be protected by the Constitution. If it had been, no one would be talking about "baby boomers", "paying for aging Australians" or worrying about "the young paying for the old". The Fund would by now be self-sustaining. By 1950 The Fund was worth 100,000,000 Australian pounds, a huge amount of money for that time and a huge temptation for politicians.

In 1972 Gough Whitlam led Labor to government with the "It's Time!" campaign. To cut a long story short, "The Dismissal" happened and Malcolm Fraser became the Liberal Party Prime Minister. Fraser raided the Trust Fund. John Howard became the Coalition government Prime Minister in 1995 (1995 - 2007). John Howard changed the legislation so that the 7.5% of PAYE and profits tax went to General Revenue rather than the Trust Fund. Labor's Kevin Rudd became Prime Minister in 2007 (2007 - 2010). During this time Rudd (Labor had given up all pretence of being a progressive party) legislated the Trust Fund out of existence. This was a politician bum covering exercise that Fraser and Howard had forgotten to do. With the Trust Fund in existence, a future Prime Minister could get a fit of "We have to look after our people" and put together a Trust Fund Board and ask them to find the stolen funds. Crazier things have happened!

So, a Labor Prime Minister and a Conservative Opposition Leader saw the need and created a fund to take care of the returned service people, medically disabled and unemployed. Two Liberal Prime Ministers and a "Right" faction Labor Prime Minister raided, dismantled the funding and then wrote it out of existence.

Young 'uns ... only 7.5% of the tax revenue was needed. That was because it was locked in for purpose, not used to buy nuclear submarines so that we can become the 51st state of the USA.

 

[MariaG]

I have 2 part pensions, one the Aged Pension and the other from my Super. Because of this I have to pay just over $400.00 a month for an Aged Care Package. I have used most of my savings and have applied for financial hardship but have just gotten their reply. I will be handing my package back and will go it alone because I cannot afford their "assistance" anymore and what I have been asked to provide is ridiculous. I am a level four recipient, so they have assessed me as being in the highest need group. The stress and upset this is causing me is not worth it. I go to church once a week. If I miss a service someone from my church will come to check on me, so if I die alone, I will eventually be found. I don't want their "assistance" anymore. I just cannot afford it.

That's terrible Rose. $400 a month is a lot to pay towards aged care. My hubby is on level 3 and much of our own money has gone towards improving his physical comfort. Can't wait for level help any longer.
Level 4 is not easy to obtain, so you must be in legitimate need. I can only imagine how upsetting this is for you.
So much for Superannuation taking the place of the pension.
I wonder of another provider can do something for you. I wish I had the answers.

 

[gordon1940]

My only concern is that our Super is very much tied to corporate profits.
Natural resource sales.
Mega institution profits, Supermarkets, Airlines, Banks etc.

That is the reason your funds grow and at a greater rate than most Savings.

 

[DrivingGirl]

If you care to read my comment again, you will find that I responded to another member who whinged that Jim Chalmers is on a privileged super scheme compared to other workers. Jim Chalmers was elected in 2013 which means he receives the same employer super contributions as every other worker in Australia - namely 11.5%!

If he leaves politics, I would imagine that he can easily get a job at a much higher salary than that of a Minister!

Probably but who cares! I did read your comments, but couldn’t see why we were wasting discussion on someone who will never be in the same boat we are - and couldn’t care less about any of us!

 

[Esma Rose]

Imagine having worked for a Firm for 50 years & 5 years before you are going to retire, they suddenly introduce Superannuation. The deficit is so high from your weekly wage that a 2nd job is needed. Fortunately it came to complete a reasonable comfort retirement,& of course earlier in our marriage we lived frugally. The pennies we saved were the notes that went to the bank. To do that enforces you to go without the necessaries in earlier life. You learn selflessness very early & are limited to long holidays, but we always saw our 2 children were NEVER wanting. This year I outgrew my immediate family, & I wanted or wished for nothing more. I loved & adored my family. I had the perfect provider, lover & gentle man you could have wished for. We worked as a team in everything & went into marriage right after WW2 with me owing my husband to be "the watch" for his gift, a glory box so full of necessaries I had saved during my job, the clothes on our backs & 16/1 in the joint acc......& a rental. Love can do many things when Faith is on each others sides. Second hand furniture that we did up from my husbands 6/- a day that through the war was given as a pay plus a few bob to the guardian @ home which she was always grateful for.

Life & people today are different. They want their cake , every city live show they indulge in because you only live once. Good for them.
For the people who work know the meaning of WORKING their butts off, I say "You beauty, good on you, you deserve everything you save for," but the ones who know "other peoples" with no consideration for another, never work, skite they are on the dole, no self pride whatsoever, I would sit that kid down & give him one of my lessons. No, you talk first, treat him as you would yourself. Have patience & plenty of stories to scare the living daylights out of him when there is a likelihood he won't be able to afford toilet paper, toothbrush & a coffee because he has to pay rent to a stranger who won't wait a day to be paid.

In our day you never thought of independence by living home until marriage was on the list. So "cushy" being home when your parents did everything for you.
In all honesty we adored having our children & home to have a night talking of what happened @ school that day. You got to know how they filled in their day, then they were just as interested in ours. (No telly in those days, just games & radio).

Yes, I fill in my days ever so teary but look @ it this way friends, "My family won'.t have to feel unhappy that I have not gone to Our Lord yet.
They will be happy tears when @ last I meet them to give them the latest goss.

 

[Lynjw]

I am 69 and when superannuation came out I wasn't working, but i did manage to find work once i retired I only had $20,000 in super, which is gone now so I live on my disability pension, the govt is only good for their payments and not for the people, wonder if they would be able to live on a pension and pay rent etc.they should give it a try for 3 months and see how they would live

Pi agree. It should be compulsory for the politics s to spend 6 months minimum on a pension income to understand how hard it is. Let them experience our struggle and maybe they’ll be more informed and not keep taking them not giving back to Those in need.

 

[Gsr]

The whole purpose behind superannuation is to get people to finance their own retirement and reduce their dependence on welfare!

And before someone tells me that the age pension is not welfare, it is!

Well let’s hope the ex politicians lose their pensions and self fund their retirements as they expect everyone else too. After all, none of them should even get a pension unless they meet exactly the same criteria as the rest of us. Millions would be saved and boost the budget each year if politicians took a reality check and stopped ripping off the public purse.

 

[Rhondda@Benji]

Mr Chalmers's super contributions are as follows:

What is the rate of member contributions?​

Contributions are a fixed percentage of:

1. parliamentary allowance; and
2. salary for Ministers of State; and
3. allowance by way of salary for office holders.

The contribution rates are 11.5% for the first 18 years service and 5.75 % thereafter.

Members of the PCSS are unable to make salary sacrifice superannuation contributions.

Parliamentary Contributory Superannuation Scheme | Department of Finance

Information Pamphlet The legislative basis for the Scheme is the Parliamentary Contributory Superannuation Act 1948 (the PCS Act

www.finance.gov.au

I agree that his salary is most likely higher than that of someone on an average salary, but I would bet that when he leaves parliament, he will have no problems getting much higher paid jobs than what he has now. Here is some information about parliamentary salary increases that might be of interest:

In its 2020 Remuneration Review Statement the Tribunal decided to provide no adjustment to remuneration for public office in its determinative jurisdiction from 1 July 2020.

On 10 June 2021 the Tribunal notified its decision to determine no adjustment to remuneration for public offices in its jurisdiction with effect from 1 July 2021.

Remuneration Tribunal (Members of Parliament) Determination 2020 and Remuneration Tribunal (Members of Parliament) Determination 2021 put the decisions into effect. The Tribunal issued a report on ministerial salary in July 2021 that provided no alterations to the existing percentage levels.

On 13 June 2022 the Tribunal decided an increase of 2.75 per cent for public offices in its jurisdiction with effect from 1 July 2022. The Tribunal gave effect to this increase from 1 July 2022 through the Remuneration Tribunal (Members of Parliament) Determination 2022. The base salary increased from $211,250 to $217,060.

The Tribunal issued a report on ministerial salary in July 2022 that provided no alterations to the existing percentages levels.

The separate appendix table to this quick guide, Remuneration of members of parliament, parliamentary office holders and ministers of state, provides the base salary for members of parliament as well as salaries of office for ministers and parliamentary officer holders.

2022 Parliamentary remuneration and business resources: a quick guide

Updated 11 November 2022 PDF Version [526KB] Cathy Madden and Deirdre McKeown Politics and Public Administration Section Introduction In 2017 the Turnbull Government introduced the most extensive changes to parliamentary entitlements since the current system commenced in 1990

www.aph.gov.au

Thank you very much Trudi for this very informative article.

 

[Pammyt]

Retiring comfortably is on the minds of nearly everyone planning for the future. But how much money you need each year to do so, or what money you’ll have access to, can depend heavily on the country you’re in.

With that in mind, it looks like the age pension is going to become a less significant portion of Australia's Gross Domestic Product (GDP) in the coming decades, according to a new report.

The report, titled the 2023 Intergenerational Report, has stated that spending on the aged pension will drop from 2.3 to two per cent of GDP by the time the country reaches the 2060s.

View attachment 28261

Aged pension spending will drop in 2060. Credit: Pixabay/Pexels

This is despite projections that the number of people aged over 65 will double to nine million, and those aged over 85 will triple.

But why is that the case when the number of pensioners is increasing?

Well, the reason is that the rising superannuation savings pool is set to increase to 220 per cent of GDP by 2060, with the number of age pensioners expected to fall by 15 per cent.

There is approximately $3.5 trillion in the super assets pooled held by around 17 million Australians As the super pool continues to rise, fewer Australian seniors will be eligible for age pension payments.

By this projection, the country is set to have the lowest proportion of public spending on pensions among the Organisation for Economic Cooperation and Development (OECD) nations by 2035.

Treasurer Jim Chalmers described the superannuation system as 'intergenerational genius': ‘Super is delivering on its promise–providing a better retirement for more Australians and a better outcome for the budget over the next 40 years,' he said.

As Assistant Treasurer Stephen Jones said, 'More people are going to expect more. Superannuation is ensuring that those increased expectations and the increased notions about what it is to live a dignified retirement is going to be met.'

You can watch an ABC News In-depth report about this topic here:

​

In related news, the Aged Community Care Providers (ACCPA) has proposed changes to the superannuation savings, which they said should be set aside to help improve standards in aged care and address the sector’s funding shortages.

Members have expressed their opinion about this proposal, with Member @JG48 saying: ‘So like the retirement fund we all used to be compelled to pay into before the creation of Superannuation. The one that the Labor Government took saying the next generation can cover the costs of the people's money they stole? Young people now have to pay for the pre Superannuation retirement, but only because the retirement savings have already been taken by Labor. It's not paying for, it's paying back....’

Member @Roscobro commented: ‘Leave our superannuation alone.’

‘The problem is, no one is asking where is the money going that people currently are paying. ? Because it’s not going on their care. Where is it going? No accountability.’ Member @Januvia1952 pointed out.

Key Takeaways

• Spending on the aged pension in Australia is expected to decline, despite a doubled ageing population, due to increased superannuation savings.
• By the 2060s, the number of people aged 65 and over is expected to double to nine million, while those aged over 85 will triple.
• The number of people on the aged pension is projected to decrease by 15 per cent as super balances rise to almost 220 per cent of GDP, leading to Australia having the lowest proportion of public spending on pensions among OECD nations by 2035.
• The Treasurer, Jim Chalmers, applauds the superannuation system for providing a better retirement for more Australians and a better budget outcome over the next 40 years.

What do you think of the 2023 Intergenerational Report, members? Share your thoughts in the comments below!

 

[tomtom]

I would love to see Mr Chalmers living of the aged pension and not live on the pension payments that politicians get. Take the huge pensions paid to politicians and add it to the aged pension. People who worked in excess of 50 years and paid taxes for all 50+. Disgusted.

Hi Imbi - I so agree with you - I am 83, went through the Labor 17% - had our own business ( for retirement ) the interest rate killed our hopes - then this " smiling " idiot comes along and starts to make my final years miserable, just when we saw a small light at the end of the tunnel. We didn't have super in days gone bye but when the 17% hit all our savings vanished, because we lost our home - everything., so Chalmers, piss off and leave seniors alone.