Here’s why we’re calling this the FiftyUp Federal Budget

With all the tough talk about raising the retirement age, increasing the age where you can access your super, adjusting the pension assets test and paying to see a GP, it’s hard not to see this Federal Budget as being targeted at the over-50s.

Here at FiftyUp Club HQ, we’ve taken to calling it the “FiftyUp Federal Budget”, and we plan to be very vocal in representing our members if the rumours prove true.

Of course, noone outside the Federal Government knows until Tuesday May 13 what exactly the Budget will contain, but the annual “softening-up” period that comes before the Budget every year has begun in earnest, and many of the rumoured changes could directly affect older Australians.

Here’s a quick rundown of what has been suggested so far:

Raising the pension age - The age you can access the pension is already increasing from 65 to 67 in 2023. But Treasurer Joe Hockey has repeatedly said that it will have to go to 70 in the years after 2023, because we are living and working longer. Prime Minister Tony Abbott appears committed to his election promise not to change the pension age during this term, so the most we can say for now is that it looks likely to be taken to the next election.

Raising the super preservation age – Figures such as the superannuation industry’s John Brogden are now arguing that if the pension age goes up, the super preservation age must also go up to prevent so-called “Double-dipping”, where retirees spend their super and then take a pension. But the government is so far silent on this suggestion.

The pension assets test

Hockey has also suggested he is considering adjusting the means test for the pension, which currently excludes the family home if it’s your principal place of residence. The federal government’s Commission of Audit is rumoured to have suggested it, and public figures such as the super industry’s John Brogden and former unionist Paul Howes have said it must change. But this too looks set to be delayed if not shelved in this Budget after Abbott’s restatement of his election promise on Wednesday.

Medicare co-payments

Health Minister Peter Dutton has flagged the idea of “co-payments” for some visits to the GP, to help cover the cost of treating the ageing population, and payments for patients who visit emergency departments without serious ailments.

What do you think? Can the Budget survive without cuts to pensions and health costs? Are there better ways to achieve them? Click here to have your say in the FiftyUp Club forum.