EMPLOYMENT No incentive for pensioners

A WARRNAMBOOL pensioner claims the government’s “unretire” package provides no incentive for seniors to return to the workforce.

Lyn (surname withheld on request) had recently lodged her interest to “un-retire” and return to the workforce on a part-time basis but said that after looking into the payment scheme further, she claims she would lose too much of her current pension to make it worthwhile.

The 76-year-old currently spends more than 24 hours each week doing voluntary work between the Uniting Church Op Shop and Foodshare but is also keen to spend some time doing paid employment.

“Pensioners like me who, I feel, are still capable of being out in the workforce on a part-time basis have no real financial incentive to do so,” Lyn said.

“There are so many businesses crying out for workers, and the government says its encouraging seniors to un-retire but we have more to lose than gain.

“Going back to work, for people like me, would mean being able to afford to go out for a nice meal during the week or perhaps enjoy a small luxury occasionally. But sadly I’d lose more (financially) than I’d gain.”

When delving further into the prospect of returning to work, Lyn discovered that single pensioners like herself could only early up to $190 per fortnight before her pension would be affected – at the rate of 40-50 cents in every dollar.

On the Australian Government website it was noted that the ‘pension income test’ is designed to encourage pensioners to supplement their pension with additional private income.

The site stated...“A pensioner can receive an amount of private income before their pension rate starts to reduce”.

This is the income free area which, from September 20, 2022, is $190 for singlerate pensioners and $336 for couples (combined).

For each dollar of income above the income free area, the single pension is reduced by 50 cents.

“So, I would work to earn a few dollars and lose a chunk of my pension?” Lyn said.

“Where’s the incentive in that? The government really needs to revisit this socalled scheme if it is serious about helping pensioners return to the workforce and, in turn, help businesses get the workforce they desperate need right now.”