The reality of the dirty deal done on aged pensions neo Greens and LNP

 I am an aged pensioner and my husband and I have been told we will lose quite a lot of our pension which will put us under IMMENSE financial strain/stress. When setting up arrangements for retirement one size doesn’t fit all and it can be very complex. We set up our arrangements decades ago and these changes is like ‘changing your horse in mid stream’. We can’t do anything to make our situation better. We are on one Defined Benefit Pension, we have no capital to draw down, because that’s how the DBP is set up, when we die the pension will go back into a collective pool of money which on principle is a good idea from our point of view. We haven’t been concentrating on making as much money as possible during our lives we have spent our time and money on our children with the idea we would have enough to live with this pension, with top up from Centrelink. We were advised to do this by Financial Services Offices at Centrelink.   We haven’t ever negatively geared, we have no assets and no large amounts of savings. Our income will go down drastically and no one seems to be aware of the ramifications for people in our situation. At least they could have grandfathered the changes for people like us. We feel totally let down by the Greens, who we voted for last election, and will not be voting for them again. We also feel a breach of trust from the current government, when you get to our age you really don’t need this sort of stress. Also my husband has a life threatening illness, we have to pay a huge gap when we go to the doctors and pay top dollar for some of our medications etc…PLEASE realise not everyone is rich like the government tries to paint aged pensioners who will be effected by these changes.

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About sand49

I am a retired teacher who is interested in human rights, social justice, freedom of expression, and believe it is absolutely essential to have a free press for a fully functioning democracy.
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4 Responses to The reality of the dirty deal done on aged pensions neo Greens and LNP

  1. Robert says:

    You say “No assets and no large amount of savings”.

    Then this change doesn’t affect you at all. In fact it reverses the government’s pension indexation freeze, so it technically increases the pension you will get in the future by a small amount.

    Here’s an explanation of the changes from the Greens: http://greens.org.au/node/11448

    Let me know if you have any questions

    • sand49 says:

      Robert the Defined Benefit Pension is seen as an asset which provides an income stream only for as long as you live. We cannot the capital to make up for what we lose thanks to the Greens and LNP. We lose $8000 per year and we are not wealthy.

    • sand49 says:

      I have read the Greens ‘fact sheet’ and it is incorrect. Our decisions were made decades ago and we based our personal and financial decisions on what we were told at the time. At the very least these changes could be grandfathered. If you are really interested in the truth about how these changes will effect people like us you could call up Centrelink and speak to a Financial Information Services Officer, this is where we received our information. These changes will come into effect January 1st next year and we have no time to adjust anything to compensate for the loss of $8000 per year.

    • sand49 says:

      Dear Robert,

      Check out how the pension changes have affected the Defined Benefit Scheme. My husband and I live off one DBP and we have lost $8000 per annum from our government pension. We made our decisions about our retirement many years ago and we cannot change things now I am in my late 60s and my husband is in his 70s. We recently moved to a smaller house and had to borrow a small amount to pay stamp duty and real estate fees which came to about $35,000. We made this arrangement based on the income we had at the time. We feel we have been let down by the LNP and the Greens.

      Yours sincerely

      J. Sievers

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