That depends upon who you ask
With two-thirds of older Australians relying on it, the Age Pension is a lifeline—but also a lightning rod. Designed to support those most in need, it’s highly targeted. But is it too complex? Too harsh? Or too generous in the wrong places? Now’s the time to ask: what would a fairer system look like to you?
Coverage: a shared foundation
Around 65% of older Australians receive either a full or part Age Pension, providing a crucial safety net in retirement. While eligibility is means-tested, the Age Pension isn’t directly tied to your past earnings, offering support to those with limited savings. Payments are indexed to keep up with living costs, and being government-guaranteed, they offer reliable income for life. That reliability matters. But is it sufficient to meet today’s costs?
Complexity: too many hoops
Let’s face it—the rules are hard to follow. Asset thresholds, deeming, income limits, super treatment—it’s no wonder so many applicants feel lost. Even official sites can leave you with more questions than answers. People worry they’ve missed out, or worse, made costly mistakes. Have you ever felt that way?
Centrelink stress: shared struggles
Navigating Centrelink remains challenging for many. In late 2024, average claim processing times improved to 32 days, down from 84 days the previous year. Yet, of over 55,000 new Age Pension claims, along with an additional 17,953 outstanding existing claims – many remained pending. Phone support answered only 34% of calls, with nearly half the callers receiving a congestion message before being disconnected.
Behind the scenes, Centrelink staff face immense pressure, often dealing with complex cases and frustrated clients. Reports indicate that staff manage numerous aggressive incidents daily, highlighting the emotional toll of their roles.
Have you noticed improvements, or do challenges persist? We invite you to share your experiences and thoughts in the comments below.
Couples vs singles: what’s fair?
A single person gets $1,149 per fortnight. Couples get $1,732 combined. Singles argue that living alone costs more—but couples say both people should receive the full rate. There’s no easy answer, but the gap sparks real debate. Where do you stand?
Homeowners vs renters: an uneven playing field
The family home is exempt from the assets test, giving homeowners a clear advantage. Meanwhile, renters face rising costs—and growing insecurity. Is the system out of step with the real cost of housing?
Self-funded retirees vs pensioners: false divide?
Some who saved feel punished for doing the right thing. Others point out they never had the same chances to build savings. Is the system rewarding the wrong behaviour—or just dealing with different life paths?
Working while on the Age Pension: is it still worth it?
Want to earn a little extra? Many Retirement Essentials members say that the rules make this feel risky. Small amounts of work can trigger cuts, delays, or stressful reporting. Some feel penalised for staying active or independent. Should it be easier to combine work and Age Pension entitlements?
The big picture: where’s the balance?
Australia spends less on the Age Pension than most developed nations—but almost as much again on super tax breaks, which mostly benefit higher earners. Should we be rethinking how we support retirement for all?
Time for a rethink?
A universal pension—paid to everyone of age, regardless of assets—gets plenty of support. Simpler, fairer, more transparent. Others argue the current system targets support where it’s most needed. What do you think? Should we stick with means testing or aim for a clean slate?
Can we help you?
Circumstances vary enormously for older Australians. The majority of retirees and pre-retirees will need to interact with government services well before they retire. Retirement Essentials provides a suite of affordable, bite-sized advice consultations for such members. Here’s some of what we can do for you in a guided review of your income possibilities:
- Maximising your entitlements – Assess any changes you might be able to make to maximise your Centrelink entitlements.
- Retirement Forecasting – Compare two scenarios of how your assets and income will look during your retirement journey.
- Understanding more about super – Assess the options to help make your super work better for you).
- Retirement Health Check – Identify opportunities to ensure your savings are on track to live your best possible retirement.
- Understand impacts of your home mortgage – look at the benefits of repaying or maintaining your mortgage in retirement.
We’d love to hear from you.
Have you faced challenges with the Age Pension?
What changes do you think would make the system fairer or easier to navigate?
Share your thoughts and stories in the comments.
