The promises that could determine the next federal election

About 50 per cent of Australia’s electorate is now aged 50 and over, so retirement-related issues are no longer a side note – they’re a deciding factor.

Superannuation, the age pension, housing, healthcare and the cost of living are all on the table. The choices made in this election will shape the future for millions of Australians in their 50s and beyond.

A voter places her ballot paper at a polling booth in Sydney, Australia, Saturday, May 21, 2022. Credit: AP

If I were a politician staring down an electorate for whom retirement feels confusing, challenging and overwhelming, I’d be making some big promises to fix it. To help both sides prepare, here is a wish list of the issues on which many over-50s want headway (even as an apolitical voice serving older Australians, I include myself).

Think of it as a pick-list for politicians of pre-election promises they might like to make. You can add your own or debate them in the comments.

Guarantee stability in superannuation tax rules

Superannuation is supposed to provide certainty for retirement, but constant rule changes make it hard for Australians to plan ahead. The current government’s proposed tax on super balances over $3 million has stalled in the Senate, but tax changes in super are rarely off the table.

New governments tweak the system every few years, making long-term financial planning almost impossible. Instead of treating super as a political football, a progressive government could commit to a 10-year (or longer) moratorium on major super tax changes. Retirees and pre-retirees need confidence that the rules won’t keep shifting under them.

Make financial advice cheaper and more accessible

Australia’s financial system is complex, confusing and full of fine print, yet most people are expected to navigate retirement planning on their own. Professional financial advice can make a huge difference, but for many retirees this is simply too expensive.

New laws – whenever they finally arrive – will allow super funds to provide financial advice, which could help fill the gap. But without strict oversight, there’s a real risk that funds will push their own products instead of providing truly independent advice.

Politicians could promise to introduce stronger consumer protections to ensure super fund advice is transparent, product-neutral and genuinely in retirees’ best interests.

They could also expand tax deductions for professional financial planning fees, making one-off financial advice – including super contributions, withdrawals and transition-to-retirement and retirement planning – tax-deductible up to a cap.

That would bring professional advice within reach for all Australians – not just those who can afford to pay thousands upfront. Of course, we’d need protections for consumers to ensure the advice industry didn’t misuse it too.

Improve retirement education so people actually understand super

Most Australians don’t fully understand how it works until they’re nearing retirement, although mandated super has been around for more than three decades. Many retirees don’t know how super withdrawals affect pensions, how super is taxed or how to make savings last for the rest of their lives.

If politicians expect Australians to rely on super, they need to help them understand it first. Instead of relying on a government website that few people use for information, the next government could introduce a national retirement literacy program.

This would cover workplace retirement education, so people understand super long before they retire; online tools and in-person seminars to help people navigate pension rules, tax implications and investment strategies; and a mandate for better education by super funds, making information clear, relevant and easy to act on.

Victoria has shed 20,000 properties from the state’s rental stock over 18 months.Credit: Bloomberg

Fix rent assistance so pensioners aren’t left struggling

The age pension was built for home owners, but a growing – though still relatively small – number of retirees and soon-to-be retirees are renting or still carrying mortgages. And the fear of renting for life? That’s terrifying.

Once you hit the age where banks won’t lend to you, there’s little you can do to change your situation. Rising rents and a lack of affordable housing have left more older Australians financially stretched, yet Commonwealth Rent Assistance hasn’t kept pace with rising rents.

If the next government is serious about keeping pensioners above the poverty line, it should increase rent assistance so it reflects real rental costs. Beyond that, we need a proper plan to boost affordable housing for retirees, especially single older women, who are at the highest risk of homelessness.

Remove financial penalties for downsizing

Many retirees would love to downsize, but financial penalties – among them state stamp duty and federal age pension means-testing – often make it more expensive than staying put. Selling the family home can mean losing pension benefits, while the upfront costs of moving can eat into retirement savings.

A government that wanted to shine could promise to work with state governments to expand stamp duty concessions for downsizers and exclude a portion of home sale proceeds from pension means testing.

This would help retirees move into more suitable housing without sacrificing their financial security.

Improve incentives for over-50s to stay in work

Many Australians want to keep working, even part-time or casually beyond 60, but age discrimination, a lack of flexible roles and weak financial incentives make it difficult. Employers often prioritise younger workers, while midlifers struggle to find part-time or contract roles that fit their needs.

The government should increase superannuation and tax incentives for working past pension age and introduce policies that encourage businesses to employ older workers in flexible, part-time and remote roles. If politicians are serious about keeping Australians in the workforce longer, they need to make it easier.

Fix the bulk billing and Medicare crisis

Healthcare costs are rising. Bulk billing is disappearing. Many retirees are paying out-of- pocket for GP visits and specialist care, even though they expected Medicare to cover the basics. Medicare rebates haven’t kept up with medical costs, so older Australians struggle to afford essential care.

Politicians need to increase Medicare rebates for essential services and introduce incentives for GPs to prioritise bulk billing for pensioners and retirees.

Retirees should not have to skip medical care because they can’t afford it.

Stop a hefty deeming rate hike from hurting pensioners and seniors health cardholders

This one isn’t sexy but it’s important. From June 30, the freeze on deeming rates – the calculation that underpins the income test for the age pension – that has been in place since COVID-19 is set to end.

This means the government could lift these rates, increasing the amount Centrelink assumes retirees earn from their savings when assessed for the age pension income test and the Commonwealth Seniors Health Card.

The problem? These assumptions often don’t match reality.

A government-in-waiting could promise to phase in deeming rate increases gradually, ensuring they align with actual investment conditions rather than simply mirroring broader interest rate rises. They should also introduce protections for vulnerable retirees.

Bec Wilson is author of the bestseller How to Have an Epic Retirement. She writes a weekly newsletter at epicretirement.net and is host of the Prime Time podcast.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making financial decisions.

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