CSPA calls for pension inquiry
The Combined Pensions and Superannuants Association of NSW (CSPA) has called for an independent body to be set up to allow pension and allowance rates to operate in a similar way to the Remuneration Tribunal that pays rates for politicians.
Earlier this week, the Association of Superannuation Funds of Australia (ASFA) said the cost of living in retirement had increased.
CSPA compared figures released by ASFA to the age pension to demonstrate the inadequacy of current pension benefits.
"The ASFA Retirement Standard found that costs of living in retirement have gone up and a couple looking for a comfortable retirement now need an income of $56,339 per year, while those seeking a modest retirement lifestyle require $32,555 a year.
"The Age Pension currently stands at $20,087 per year for singles and $30,284 for couples, leaving it well below the amount required for a ‘modest retirement lifestyle' defined by ASFA as only being able to afford basic activities," said CSPA senior policy advisor Amelia Christie.
Christie said the age pension needed to cover the essentials and keep retirees above the poverty line.
"CPSA calls for an independent body to be set up to determine Pension and Allowance rates to operate in a way similar to the Remuneration Tribunal that sets pay rates for politicians, to ensure that recipients are able to maintain an adequate standard of living," she said.
Christie said the income support bonus that the Government passed on Wednesday was a "slap in the face" to people on allowances, who would receive just $4 per week extra.
"It's made worse by the fact that the Coalition voted against it," she said.
The Senate Inquiry into the adequacy of Australia's allowance payment system last year found that payment rates were inadequate, but no recommendation has been made to increase the payment rates or make a change to indexing, CSPA said.
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
