Avoiding austerity - caring for our aged

Compared to the preferential treatment of superannuation, treatment of earned income via the Pension Bonus Scheme - is not generous enough over the first couple of years. And for those attempting to supplement their pensions with earned income, the regime is punitive.

Superannuation also, more generally, reproduces class stratification in retirement - yet does not provide security for retirees in the event a financial crisis such as the one we are facing now. There is an unreasonable element of risk. A fully public pension fund scheme could address these issues.

Quality of life for every pensioner

There are many other essential issues regarding the rights of aged pensioners - and the support they deserve - so that each may enjoy true quality of life.

As noted earlier, support should be provided for all pensioners - in particular aged pensioners with generous but fair income and assets tests.

To begin with, quality heating units and air-conditioning should be provided for aged pensioners, and installed free-of-charge. These units need to be safe and energy efficient. During winter, in particular, elderly Australians are at risk of contracting pneumonia and similarly, air conditioning can be of critical importance - especially in light of the extreme weather seen in Melbourne and Adelaide at the time of writing. Failure to provide essential heating and cooling has the potential (quite literally) to be a matter of life and death.

Mobility is also a core contributor to quality of life, including the vital area of social engagement. Free public transport for these men and women must be provided while taxi vouchers ought to be provided where public transport is not a reasonable option.

Imposts upon those least able to afford …

With the increased costs of living, aged pensions should also be raised to ensure that none of these citizens live in poverty.

In some states, construction of private infrastructure will see an explosion of costs into the future. In Victoria, private tollways already provide a significant imposition.; while there is an increasing cost for water - supposedly to “send market signals” - in the context of drought and scarcity. Such measures, though, could hurt those most vulnerable.

The proposed desalination plant in Victoria is one such example. Peter Ker, writing in The Age reported that Victoria’s water retailers were set to double the price of water by 2013: with a decision being made in 2009. Yarra Valley Water, for instance, will charge its customers - on average - “about $585 per year”.

Such factors as this make plain the need for reform not only of aged pensions, but of all pensions.

Reform of pensions

There are a number of streams of thought on the reform of the aged pension. The Greens have for some time been arguing for “an increase of $30 a week” for the unemployed and for carers - and also for aged pensioners.

Drawing on last year’s figures, such a move would bring single aged pensions up from $562.10 a fortnight to $592. However, there needs to be a specific and persistent formula to make sure pensions keep up with the cost of living.