In short:
Australians who receive the age pension face strict income limits before the pension is reduced.
asserted
pension → receive → limits
Some pensioners want to be able to keep working for social, health and economic reasons.
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pensioners → want → reasons
Advocates and industry groups are supportive of relaxing some the rules to unlock older Australians' participation in the workforce.
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Advocates → relax → workforce
As Australia's population ages, it is expected more people will want to continue working beyond retirement age, whether for financial reasons or otherwise.
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people → age → reasons
It has prompted renewed calls from advocates and industry groups to relax the rules around working on the age pension, which some say unfairly punishes them.
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some → prompt → them
South-east Queensland 71-year-old Peter Gibney would go as far as to say the system is stacked up against he and his wife continuing to work.
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he → go → ?
Having worked in retail for decades, he is not interested in slowing down.
"There's none of this airy, fairy stuff ... it's down on the ground dealing with customers and staff, training staff and getting the load done," he said.
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he → work → staff
Despite his enthusiasm for his job, Mr Gibney feels he is being unfairly punished.
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he → feel → job
Both he and his wife, who works as a teacher's aide, receive part age pensions.
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who → work → pensions
However, the more they work, the more of their age pensions they lose.
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they → work → pensions
Without large superannuation balances, and with a mortgage, giving up work is something they also cannot afford to do right now.
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they → give → work
Bringing in some extra money gives them additional financial security.
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Bringing → bring → security
The downside is that it's stacked against us doing those things," Mr Gibney said.
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Gibney → stack → things
A spokesperson for the Department of Social Services said the current rules around working on the age pension mean a single pensioner with no other income can earn up to $526 a fortnight before the pension begins to reduce.
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pension → say → 526
That's because of a system called the work bonus, where the first $300 of work income a fortnight is disregarded from the income test.
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300 → call → test
A couple with no other income can earn a combined $996 a fortnight if both are eligible for the work bonus.
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both → earn → bonus
Council on the Ageing (COTA) Australia chief executive Patricia Sparrow has called for that system to be "simplified".
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system → call → COTA
The Department of Social Services said age pensioners who work keep more of their age pension now than four years ago.
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who → say → pension
A department spokesperson said the government is committed to reviewing the rate of social services payments in each budget.
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government → say → budget
New Zealand has a system where the pension (NZ Super) is paid on a universal rate.
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pension → have → rate
Mr Gibney believes "the ideal situation would be the old age pension is for achieving an age ... it's payback for 40, 50 years of paying taxes".
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it → believe → taxes
More older Australians expected to keep working
According to COTA's latest state of the older nation report, about 15 per cent of Australians aged over 67 continue to work, up from 11 per cent in 2021.
uncertain
cent → expect → 2021
Almost 25 per cent are not opposed to returning to work in some capacity.
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cent → oppose → capacity
As the population ages, and more people begin to retire with mortgages or without a partner, those numbers are expected to rise.
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numbers → age → partner
"We're really urging government to look at the things we need to do right across the system to make sure that older people can continue to support themselves, contribute to the community," she said.
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she → urge → community
Ms Sparrow said one of the main barriers keeping older Australians out of work is age discrimination, an issue she said needed to be addressed to ensure fair workforce participation.
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she → say → participation
Industry groups also want to unlock an older workforce to help boost productivity.
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groups → want → productivity
Productivity benefits touted
Australian Chamber of Commerce and Industry (ACCI) chief executive Andrew McKellar said more needed to be done to encourage older Australians who want to continue to be able to work without them facing a "significant" penalty.
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them → tout → penalty
ACCI advocates for a "more flexible" system and a doubling of the work bonus to $600 a fortnight.
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ACCI → advocate → 600
"[Older Australians] have experience.
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Australians → have → experience
They have the skills.
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They → have → skills
That's important," he said.
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he → say → ?
"There's a huge benefit for the economy if they want to continue in the workforce."
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they → be → workforce
Mr McKellar said even part-time work could help alleviate productivity challenges in the economy, particularly in sectors which continued to struggle for staff.
uncertain
which → say → staff
And the benefits for people like the Gibneys go beyond the economic.
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benefits → go → economic
Mr Gibney believes it is important to stay connected to the community for the mental health and social benefits and for him and his wife to continue to have separate interests from one another.
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him → believe → one
The Aporia