Australia Pensioners Lack Savings

Australia Pensioners Lack Savings

The Australian Pension Review will examine if the state pension payments provide a basic standard of living for retirees, a government background paper says.  The document said payments are currently benchmarked to 25 per cent of the male total average weekly earnings, but it said the current single rate is 60 per cent of the combined couple rate and was lower than the average for major OECD (Organisation for Economic Co-operation and Development) countries of 63 per cent.

It also revealed most pensioners do not have substantial savings or other assets – with more than half having assessable assets under Aus$30,000 (£14,000) and 30 per cent reporting having bank balances of less than Aus$1000 (£466).  The review follows findings of the Senate standing committee on community affairs, which drew attention to the financial circumstances of older Australians with few assets who do not own their own home.

Useful links:

Learn more about Expat Financial Advice and related topics in the Australia IFA Channel

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary

Useful links: