Pensioners in poverty – that’s neither a phrase nor a concept any of us would be comfortable with. Yet it is a stark truth for many Australians, and could soon be for more unless action is taken immediately.
That’s the view of National Seniors Australia (NSA), which has proposed a new assistance card for Australia’s most vulnerable pensioners.
A new card, labelled by NSA as the ‘Pensioner Concession Card Plus’ (PCC+), is needed to support low-income pensioners, the advocacy group says.
This card would deliver additional benefits to those already available to pensioner concession card holders.
Pensioners in poverty – a serious issue?
According to NSA, a staggering 23.7 per cent – nearly a quarter – of Australian pensioners live in poverty.
And the figure is even higher for Australian women. NSA’s chief advocate, Ian Henschke, said: “It’s particularly dire if you’re a woman, single and rent.”
While 21 per cent of male Australian pensioners live below the poverty line, “for women it’s 26.2 per cent, a startling difference”, Mr Henschke said.
He also pointed out that most women will have a lower superannuation balance than their male counterparts. And many, he said, are much more likely to have no super at all.
Now add in the latest cost-of-living figures
While interest rates have settled, other aspects of life – more likely to affect pensioners – continue to increase in cost. The Australian Bureau of Statistics (ABS) released its quarterly CPI figures last week, highlighting cost increases relating to several essential items.
While the overall CPI increase of 1.2 per cent does not sound particularly daunting, the devil is in the detail.
Car fuel jumped by 7.2 per cent, electricity by 4.2 per cent and rent by 2.2 per cent. These are big numbers for a single quarter.
The increases in electricity and rent are likely to specifically affect pensioners in poverty, many of whom are renters.
How will NSA’s proposed new card help?
Under the NSA’s proposal, PCC+ holders would receive all the same benefits available through a standard Pensioner Concession Card. However, pensioners in poverty would receive additional concessions.
PCC+ cardholders could “access extra benefits such as higher energy concessions and more affordable healthcare, including dental”, Mr Henschke said.
He added that identifying those who qualify for additional benefits would be relatively straightforward.
“An assets and income test is already used to determine pension payments. This information could be used to determine eligibility for PCC+,” he said.
The cost of providing the extra assistance would not break the government bank, Mr Henschke stressed. “Not every pensioner would receive these benefits, only those living in poverty,” he said.
Personalising pensioners in poverty
In launching its campaign for the new PCC+ card this month, NSA highlighted the plight of one particular pensioner, ‘Sandra’.
“Sandra shared with us her inability to afford dental treatment. It didn’t just cost her money – it cost Sandra her teeth!”
In this case, Sandra relies solely on the Age Pension and has no savings. Faced with the reality that the treatment to fix her dental problems was too expensive, Sandra had her teeth removed.
“It was a traumatic experience for her with impacts beyond cosmetic,” according to the NSA case study.
Providing government support of $500 per year for dental care to PCC+ cardholders could avoid such outcomes, NSA said.
And the PCC+ card’s introduction could go some way towards reducing the number of – or helping – Aussie pensioners in poverty.
Do you know of any pensioners in poverty? Do you support the introduction of a PCC+ card? Why not share your thoughts in the comments section below?
Also read: Age pensioners to benefit from changes outlined in government white paper
Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.