Is the Age Pension welfare or an entitlement after years of paying taxes?

In a poll commissioned by The Australian newspaper, 51 per cent of respondents said everyone should do their best to save for retirement and that the Age Pension should be there as a safety net. Thirty-five per cent said they paid enough tax and the pension repaid a portion of that. A small minority said everyone should take responsibility for funding their own retirement.

Age Pension payments will cost around $45 billion this financial year and are forecast to blow out to $51 billion by 2020 as more baby boomers reach retirement age.

But should it be regarded as welfare? Not in my book. Australia is one of a select few countries with an income means-tested Age Pension. Most countries have universal entitlements based on earnings, which are funded by contributions in addition to income tax.

What do you think? Should we be looking after older Australians better?