Saving and the aging population

How do these actions encourage either self-reliance or saving?

In its haste to support government policies, the Reserve Bank continues to cut interest rates to the benefit of big business and people who can afford to buy their own homes but to the detriment of many older people who rely on interest earned on meagre retirement savings to maintain the most basic of living standards.

The niggardly pension of just 25 per cent of average male weekly earnings, when fiddling of the dates and payments allows payment of the full 25 per cent, is barely a living wage that does not allow for a terrific quality of life.

Compounding this poor economic standard has been the impact of the GST on ALL pensioners, those on disability and single-parent pensions as well as those on the age pension, yet only aged pensioners over the age of 65 received any compensation for the impost and impact on living standards of this most iniquitous of taxes.

Disability pensioners and single-parent pensioners received no compensation at all while those on unemployment benefits were also overlooked.

With government policies pushing wages down through industrial policies that favour corporate downsizing and the elimination of full-time positions in favour of casual, part-time and short-term contract positions, there is little hope of any increase in savings levels in Australia in the foreseeable future.

Coupled with the rising prices of processed products both through the GST and corporate sleight of hand, there is emerging a significant increase in the 'new poor' as evidenced by reports emanating from the major welfare agencies on this subject.

With the return to power of the person referred to during the election campaign as the 'Evil Gnome', and with the 'economic clown prince' in charge of the economy for another three years, we can hardly expect any real concern to be demonstrated, or changes made, for the benefit of the little people.

Indeed the very opposite is the most likely scenario as revealed in a Government Ministerial Submission (Submission No. 8676) leaked during the election campaign period.

The document makes clear that the Coalition's post-election Expenditure Review Committee in February 2002 will be held:

"...in an environment where the objective will be significant funding cuts." (p2)

This submission relates specifically to new funding models for the Government's social security delivery agency, Centrelink, and clearly indicates that the Coalition's budget razor gang will be focussed on 'significant cuts' post election.