Post by Deleted on May 19, 2018 6:35:14 GMT 7
Voters call pension welfare, or a repayment for tax: Newspoll
Most Australians believe the Age Pension is a welfare safety net although about a third of voters from all major parties see it as an entitlement after a lifetime of paying taxes.
Only a small minority thinks all individuals should take responsibility for funding their own retirement, a special question in the latest Newspoll, conducted exclusively for The Australian, has found.
The Age Pension is the single biggest cost to the budget, reaching more than $45 billion this year, and with the ageing of the population, both major political parties have sought ways while in government to contain its growth.
Australia is unique in having an income means-tested Age Pension. Most countries have universal entitlements based on earnings, which are funded by contributions additional to income tax.
Newspoll found 51 per cent of voters believe everyone should do their best to save for retirement but that the pension should be there as a safety net. By contrast, 35 per cent say they pay enough tax and the Age Pension entitlement is repaying a portion of that.
The findings are broadly similar across supporters of the Coalition, Labor and the Greens. Only One Nation supporters strongly believe (54 per cent) that the pension is an entitlement. Coalition voters are more likely to say the funding of retirement should be the responsibility of the individual (11 per cent) than Labor voters (7 per cent) or the Greens (6 per cent).
But between 32 and 34 per cent of supporters of all three parties see the pension as the return of tax payments. Newspoll reveals a sharp difference in younger and older voters’ views. Only 28 per cent aged 18 to 34 believe the pension is a taxpayer entitlement while 55 per cent think of it as a welfare safety net. But 41 per cent of voters aged over 65 believe it is a return of their taxes while only 48 per cent think of it as welfare.
About 75 per cent of people over 65 receive either an age or a service pension, which makes it very expensive, even when payments are lower than in other countries.
Australian National University social policy expert Peter Whiteford says that while the system is not universal, it covers the vast majority of people.
“In the absence of a contributory system, you need something that covers a lot of people,” he said. “If you were just reliant on private savings, people would run out.”
Most countries had safety-net systems for the very poor and for those out of the workforce as a back-up to universal contributory entitlements, he said.
Australia’s 2.4 million age pensioners are a formidable force, as Labor has found, back-pedalling on its plan to eliminate cash dividend imputation credits.
Its opposition to government plans to raise the pension age to 70 is aimed at a demographic where it has traditionally been weak.
The Parliamentary Budget Office estimates pension costs would hold steady at 2.5 per cent of GDP for a decade, despite the retirement of baby boomers, if the government’s pension age increase was legislated.
The PBO estimates show that increasing the pension age stems the growth in pension costs due to ageing of the population.
www.theaustralian.com.au/national-affairs/voters-call-pension-welfare-or-a-repayment-for-tax-newspoll/news-story/807be44250a5126fc1f005f5804caf64
Most Australians believe the Age Pension is a welfare safety net although about a third of voters from all major parties see it as an entitlement after a lifetime of paying taxes.
Only a small minority thinks all individuals should take responsibility for funding their own retirement, a special question in the latest Newspoll, conducted exclusively for The Australian, has found.
The Age Pension is the single biggest cost to the budget, reaching more than $45 billion this year, and with the ageing of the population, both major political parties have sought ways while in government to contain its growth.
Australia is unique in having an income means-tested Age Pension. Most countries have universal entitlements based on earnings, which are funded by contributions additional to income tax.
Newspoll found 51 per cent of voters believe everyone should do their best to save for retirement but that the pension should be there as a safety net. By contrast, 35 per cent say they pay enough tax and the Age Pension entitlement is repaying a portion of that.
The findings are broadly similar across supporters of the Coalition, Labor and the Greens. Only One Nation supporters strongly believe (54 per cent) that the pension is an entitlement. Coalition voters are more likely to say the funding of retirement should be the responsibility of the individual (11 per cent) than Labor voters (7 per cent) or the Greens (6 per cent).
But between 32 and 34 per cent of supporters of all three parties see the pension as the return of tax payments. Newspoll reveals a sharp difference in younger and older voters’ views. Only 28 per cent aged 18 to 34 believe the pension is a taxpayer entitlement while 55 per cent think of it as a welfare safety net. But 41 per cent of voters aged over 65 believe it is a return of their taxes while only 48 per cent think of it as welfare.
About 75 per cent of people over 65 receive either an age or a service pension, which makes it very expensive, even when payments are lower than in other countries.
Australian National University social policy expert Peter Whiteford says that while the system is not universal, it covers the vast majority of people.
“In the absence of a contributory system, you need something that covers a lot of people,” he said. “If you were just reliant on private savings, people would run out.”
Most countries had safety-net systems for the very poor and for those out of the workforce as a back-up to universal contributory entitlements, he said.
Australia’s 2.4 million age pensioners are a formidable force, as Labor has found, back-pedalling on its plan to eliminate cash dividend imputation credits.
Its opposition to government plans to raise the pension age to 70 is aimed at a demographic where it has traditionally been weak.
The Parliamentary Budget Office estimates pension costs would hold steady at 2.5 per cent of GDP for a decade, despite the retirement of baby boomers, if the government’s pension age increase was legislated.
The PBO estimates show that increasing the pension age stems the growth in pension costs due to ageing of the population.
www.theaustralian.com.au/national-affairs/voters-call-pension-welfare-or-a-repayment-for-tax-newspoll/news-story/807be44250a5126fc1f005f5804caf64
