Election 2025: Retiree revved up about election impact on older Australians

Superannuation changes and cost of living relief top the concerns of older Australians heading into the election.

Tasmanian retiree John Pauley will watch the election campaign closely for its impact on cost of living and superannuation. Picture: Peter Mathew

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Retired senior public servant John Pauley still has plenty in the tank. The 70-year-old is a keen cyclist and, while loath to call himself such, is also a motorcycle adventurer.

This autumn he plans a ride from his home in Hobart to the Devonport ferry, and then from Melbourne to Adelaide to see his beloved Crows in the AFL’s ­Gather Round. Then the fun begins: him, a bike and a tent. Up to Cairns, then back across the continent to Kalgoorlie, then Adelaide again and finally home.

“I want to do it before they seal all the roads,” he said.

That’s not to say he is carefree. Mr Pauley, who lives in the Tasmanian federal seat of Clark, comfortably held by Independent Andrew Wilkie, will watch the federal election with much interest.

“I’m looking forward to Andrew hopefully holding the balance of power in a new parliament that I think will be really important for Australia’s future,’’ he said.

“I reckon Andrew will have learned from his time in this position in the Gillard years how to better negotiate with a minority government.”

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Mr Pauley’s concerns leading up to the May 3 poll are both general and specific. He is carefully watching the bread and butter issues of cost of living and interest rates.

“How the government handles cost of living is critical to me. What worries me most is all the costs I can’t avoid: insurance, rates, electricity and other utilities,” Mr Pauley said.

“I am pretty careful with my spending, including things like paying for things like rates, gas, electricity and water weekly so I don’t get any big bills.

“But this week I got my car rego, car insurance and home insurance in one go, and the overall cost has gone up by thousands in the last 12 months. The government’s $150 electricity subsidy for next year (announced in Tuesday’s budget) will be quickly chewed up by increased charges we face down here in Tasmania.”

Pat Sparrow, chief executive of older person’s advocacy group COTA Australia, said pensioners and retirees faced particular challenges.

“Cost-of-living increases are hurting all Australians, but especially those on fixed incomes such as people on the Age Pension,” Ms Sparrow said.

“We know many older Australians, like Australians of all ages, are struggling to deal with the enormity of the financial pressures that feel to be coming at them from all angles. ”

Council of the Ageing Australia chief executive Patricia Sparrow

Mr Pauley is also one of the approximately one million Australians with an interest in a defined benefit scheme and will be paying careful attention to any moves that affect this payment.

Like many retirees, he has concerns about reforms to superannuation proposed by the Grattan Institute, including lowering the Division 296 tax threshold from $3m to $2m and encouraging retirees to use 80 per cent of super savings above $250,000 to purchase an annuity from the government.

“I do worry about changes to tax arrangements for super,” he said. “I don’t have a big pot of savings but there seems to be some determination by the government to incorporate defined benefits into the 296 tax regime and I’ll worry I’ll get caught in that.”

Ms Sparrow said older Australians access their super at different ages and the system needed to cater to that. “The challenge for the super system over the next decade is ensuring it offers a range of options for Australians at different life stages and financial circumstances,” she said.

“Government … should do more to encourage super funds to offer diverse solutions.”