True impact of cost of living on seniors
A new video created by over 50s lobby group National Seniors Australia shows how living costs are hitting pensioners and self funded retirees on fixed incomes.
A new video created by over 50s lobby group National Seniors Australia shows how living costs are hitting pensioners and self funded retirees on fixed incomes.
The video explains how over the five years to March 2013, CPI rose by 13.4% while the cost of essentials rose by 30% to 80%.
“On average, households aged over 50 spend between 25% and 50% of their disposable income on essentials such as groceries, transport, communication and medicine,’’ National Seniors chief executive, Michael O’Neill said.
“If you’re a pensioner, a lower income self-funded retiree or a worker on a low income, there isn’t much flexibility to respond to this increase in the cost of living,’’ he said.
“Pensioners and self funded retirees with dwindling investment incomes just don’t have the opportunity to rebuild their nest eggs.
“Reduced interest rates are also severely impacting savers, including retirees who remain cautious about other investment options.”
Mr O’Neill also highlighted the fact that Australians have the fifth highest out of pocket healthcare costs in the world, with self funded retirees hardest hit as rebates and tax offsets are reduced.
“It is alarming that research indicates older Australians continue to ‘go without basics’ including food, medicines and heating/cooling to make ends meet,” he said.
In addition, more than 54% of Australians aged over 50 years maintain private hospital health insurance.
“A recent series of policy changes have increased costs, imposed access barriers for the non-insured and made retention more difficult for others.”
Watch the video here.
