Originally Posted by
Daytr
Insulting others doesn't make you right. In fact it's typically an aggressive defence mechanism to cover for a poor argument.
So tell me what portion of someone's tax paid is set aside for their future pension costs?
Where is the separate pool of funds allocating that tax to Super?
I will give you a real world example.
A person who is 85 now retired 20 years ago.
During their working life they earned the average wage from. 1958 - 1998. The average wage over that time was let's say $17,000.
They paid 30% tax if which 15% is set aside for funding their pension. That's a total of $30,600.
If their pension averaged $350 per week over the last 20 years, the cost is $364,000.
Now if the Government set aside that 15% & it was compounded it might cover the cost, might not to, but they don't as they are funding today's pension payouts with the current tax take as they do with all benefits.
But the main point is that all benefits are funded the same way. If we didn't pay people the dole or sickness benefits, we would also be taxed less.
Either way I'm not suggesting getting rid of the pension or even raising it to 67 as both National & ACT are promising. I'm suggesting that we shouldn't pay welfare to those who don't need it and the pension should be means tested.