Dependency on Age Pension jumps

In the wake of the global financial crisis, increasing numbers of older Australians are looking to the Commonwealth for support.

The 2008 global financial crisis (GFC) is threatening the once popular belief that a higher proportion of older Australians would be able to support themselves financially in coming decades.

Information obtained by the Sydney Morning Herald reveals a spike in successful applications for the Age Pension in the final months of last year.

The number of pensions handed out to people aged 65 and over jumped by 50 per cent between December and September.

During that period,new pensions allocations jumped from close to 2,000 a week to about 3,000.

At the same time, the number of pension applications jumped from 3,500 to 5,000 a week. But many of these new applications were unsuccessful.

The Herald article noted that with recent declines in the superannuation and property markets, more applicants are meeting the eligibility requirements for the full pension.

The findings echo concerns raised by a Fujitsu Consulting report released in November last year, which noted that most baby boomers were more worried about their super than 12 months earlier.

The Fujitsu survey of 6,000 people between the ages of 45 and 65 also found that 45 per cent of Australia’s 5 million baby boomers were anxious about their ability to pay for future healthcare needs.

According to the survey, almost 70 per cent of boomers believe they would rely on superannuation as their main source of income in old age.

But at the same time, two thirds of respondents felt that they did not have enough super to meet their expected future needs.

Tags: global-financial-crisis,

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