Pensioners Have Higher Disposable Income, Affordability

Aged pensioners in Australia have been doing relatively well in the last five years, according to the Australian Bureau of Statistics, which has just released its latest households report.

Despite inflation and the increase in the cost of living with the Consumer Price Index rising at 1.2 percent, the statistics show that pensioners’ overall cost of living only rose to about 0.7 percent.

Meanwhile, families with children and are living on a single income have it worst in the last four financial years.

Pensioners have to thank their twice-a-year pension increase for this, which is based on three factors: the CPI, their Pensioner and Beneficiary Living Cost Index and the Male Total Average Weekly Earnings.

According to reports, the Male Total Average Weekly Earnings increased by five percent last March.

Analysts say that if all the gathered data are accurate, pensioners are in fact, enjoying an increase seven times the average cost of living for their age group.

Analysts also say that the affordability will continue when the Rudd government plans the “big one-off pension increase.”

Reports say that the Treasury is looking into disposable income in the last four years to chart changes and decide on the budget. Based on this, pensioned couples have shown the highest disposable income at $28,373.

 

In the future, though, governments may be faced with high demands for social welfare and health reforms, as well as improvements and increased funding of the national disability insurance, as a lot of the baby boomers are already retiring.