Saturday, March 8, 2008

Rudd cuts pensions

We shouldn't be surprised by this. One of the first thing the Hawke Labor government did was cut pensions, they introduced a means test on older seniors (over 75 if memory serves ) and brought in an assets test. I was working for the Department of Social Security at the time and remember the outcry, Andrew Peacock nearly win the following election.

People believe that because they paid tax all their lives they should be entitled to a pension. Unfortunately they are mistaken. The social welfare system is an income distribution scheme not an investment plan. Governments will cut and change it to meet their own priorities.

The only way I can see to provide people with the financial security is to increase personal wealth. Thats why I'm a supporter of Saunder's Private Future Fund scheme. Replacing welfare with something better makes more sense to me then simply cutting payments.

No comments:

Post a Comment