Essay by chanosHigh School, 11th gradeB+, October 2014

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David Chan

Aged Pensioners

What is the entitlement? Lets start off by defining the term, according to business dictionary, it is the distribution or exercise of an absolute privilege or right to an economic benefit (such as old age pension, social security, unemployment stipend) granted by contract or law, automatically upon meeting the required qualification. The Australian society has a uneven distribution of expenditure amongst age groups which makes it a unfair entitlement and not achieving social equality. [1]

Age pension provides an income support payment that helps give seniors in Australia an adequate standard of living after retirement. In the current situation, the amount of government expenditure spent on age pension its self takes up a large proportion of the governments total expenditure when we compare it to the money spent on other areas such as education and welfare. As you can see from the graph on the left defense, health, welfare, education and infrastructure takes up two thirds of the total Australian government expenditure.

The largest three individual spends are on old age pensions hospitals and schools. Collectively they are equivalent to 8 percent of the GDP. [2] [3]

As you can also tell from the graph on the left, expenditures remain 1 percent of GDP higher than before the GFC and its due to the expenditure on ageing and aged care health services which ate up the governments budget.

Causes (long term + short term)