Fed: Money woes spark pensioner boom
By Cathy Alexander and Edwina Scott09 Jan 2009 5:35 PM
CANBERRA, Jan 9 AAP - The aged pension should still be increased, seniors say, despite the number of pensioners growing sharply due to the financial crisis.
Successful applications for the pension have surged 50 per cent as superannuation funds and assets shrink.
The number of people being granted a pension has risen from 2,000 a week in October to 3,000 in December.
And more people are qualifying for a full pension.
Paul Versteege, senior policy adviser with lobby group National Seniors Australia, defended the right of older people to take up a pension if they qualified for it.
He said the government should make good on its promise to increase the pension despite the fact that more people were drawing on the same pool of money.
"The time is still right for a pension increase, but it needs to be a well-targeted increase," Mr Versteege told AAP.
Single-aged pensioners, who receive $281 a week, were most in need, he said.
Mr Versteege said seniors were feeling blue due to the tough economic times.
"It's emotional stress of losing money, losing your retirement savings. It leads to a deterioration of self image."
Some of the people qualifying for a pension recently would go on a part pension, Mr Versteege said. People liked going on the pension partly because they qualified for discounts on utilities, transport and health care.
Federal Families Minister Jenny Macklin predicted pensioner ranks would continue to swell.
"I do think that it is likely that we'll continue to see an increase in the number of people coming on to the pension and also an increase in the number of people who are receiving the maximum rate of the pension," Ms Macklin said.
The government would look at additional measures to help pensioners and families "if that's what's considered necessary", she said.
The government has pledged to increase the single-aged pension, with senior government figures admitting they could not live on it.
When the financial crisis, the government indicated it might have to defer some of its promises, but promised to forge ahead with pension reform.
A major review into pensions is due in February and changes will be announced in the May budget, Ms Macklin says.
She vowed to carry on with long-term pension reform.
The federal opposition said the increase in pensioner numbers put extra pressure on the government to deliver on welfare reform.
Deputy Opposition Leader Julie Bishop also questioned the wisdom of the government telling pensioners to "spend, spend, spend" their December payments.
The government gave $1,400 to single pensioners and $2,100 to couples as part of its package aimed at kickstarting the economy.
A pensioner couple on the full rate receive $469 a week between them, compared with $281 for single pensioners.
