Apart from age prejudice in job selection, this is the most complained about issue by working pensioners, who want to work more and not have the dollars deducted from their pension. There are positives all over the place, including increased productivity and hours worked. A major vote winner for One Nation as it’s one of their major policies. This story is from the ABC.
Australians who receive the age pension face strict income limits before the pension is reduced.
Some pensioners want to keep working for social, health and economic reasons.
The pandemic, interest rate rises, the Iran war, housing shortages and health concerns mean others are not living the laid-back life they planned for.
Advocates and industry groups are supportive of relaxing some of the rules to unlock older Australians’ participation in the workforce.
It has prompted renewed calls from advocates and industry groups to relax the rules around working on the age pension, which some say unfairly punishes them.
South-east Queensland 71-year-old Peter Gibney would go as far as to say the system is stacked against him and his wife continuing to work. Having worked in retail for decades, he is not interested in slowing down.
Despite his enthusiasm for his job, Mr Gibney feels he is being unfairly punished. Both he and his wife, who works as a teacher’s aide, receive part age pensions.
However, the more they work, the more of their age pensions they lose.
Without large superannuation balances and with a mortgage, they cannot afford to stop work.
Bringing in some extra money gives them additional financial security.
“It is freedom, to a degree. The downside is that it’s stacked against us doing those things,” Mr Gibney said.
A Department of Social Services spokesperson said the rules around working on the age pension mean a single pensioner with no other income can earn up to $526 a fortnight before the pension begins to reduce.
That is because of a system called the work bonus, which disregards the first $300 of work income a fortnight from the income test.
A couple with no other income can earn a combined $996 a fortnight if both are eligible for the work bonus.
A department spokesperson said the government was committed to reviewing the rate of social services payments in each budget.
There are overseas examples to look to. New Zealand has a system in which the pension (NZ Super) is paid on a universal rate.
Mr Gibney believes “the ideal situation would be the old age pension is for achieving an age … it’s payback for 40, 50 years of paying taxes”.
According to COTA’s latest State Of The Older Nation report, about 15 per cent of Australians aged over 67 continue to work, up from 11 per cent in 2021. Almost 25 per cent are not opposed to returning to work in some capacity.
As the population ages, and more people begin to retire with mortgages or without a partner, those numbers are expected to rise.
COTA CEO Ms Sparrow said, “We’re really urging government to look at the things we need to do right across the system to make sure that older people can continue to support themselves, contribute to the community.”
Industry groups also want to unlock an older workforce to help boost productivity.
Australian Chamber of Commerce and Industry (ACCI) chief executive Andrew McKellar said more needed to be done to encourage older Australians who wanted to continue to work without facing a “significant” penalty.
ACCI advocates for a “more flexible” system and a doubling of the work bonus to $600 a fortnight.
“There’s a huge benefit for the economy if they want to continue in the workforce.”
Mr McKellar said even part-time work could help alleviate productivity challenges in the economy, particularly in sectors that continued to struggle for staff.
And the benefits for people like the Gibneys go beyond the economic.
Mr Gibney believes it is important to stay connected to the community for the mental health and social benefits, and for him and his wife to continue to have separate interests.