It's pretty well known that the pension is $273. But what's not often discussed is that this pension was always intended as income supplementation; not as income to live solely off.
Raising the pension is a terrible idea, for one main reason: we have an ageing population. Consider these statistics:
- Today, we have a ratio of around 6 taxpayers per pensioner
- In 2025, we'll have a ratio of around 3.7 taxpayers per pensioner
- By 2050, that ratio will drop to 2.0 taxpayers per pensioner.
That means that, even if the pension isn't raised, by 2050, $137 of the tax you pay per week is going solely to supporting a pensioner. That doesn't leave much money to run the country on.
The pension should be phased out; not raised. It's clearly unsustainable, and places an enormous burden on younger generations to support extravagant baby boomers with no savings capacity.