Dear Indyvidual,

«Yuyutsu,
And, those who need it because they never earned sufficient to create a so-called nest egg in the first place. Not everyone is enjoying cushy numbers like those on the Government payroll !»

Not unless they apply for the pension.
Nobody is forced to accept it, even if they starve to death or resort to begging and charities - the pension is not compulsory!

The old Age Pension is sustainable in the long term however, it must be managed much more efficiently than is the case presently.
The alternative Superannuation is unsustainable judging by the funds that fail.
Just because someone gets old doesn't mean they should automatically receive the Pension. The pension must be adjusted according to the personal wealth accumulated.
Many people use negative gearing & salary sacrifice to boost their income but reducing the amount of Tax paid must be reflected in the eventual Pension. The more they wrote off the less tax they contributed, the less the pension should be. Now, I can already hear the howls against this. Let me ask this; Those who paid into Superfunds that have gone bust, are they not applying for the Pension after the coffers are emptied ?
I have worked only in my teenage years in Europe & if I'd failed to claim for the $45 or so monthly Pension from there I would have been ineligible for the Australian Pension which I contributed 52 years of full Tax rate. The $45 or so are deducted from the Australian Pension.
An old age Pensioner has paid a higher Tax rate than anyone paying into a Superfund via a bureaucrat position or private business. I'm talking about rate not amount but at times amount is greater also.
A clever bureaucracy would realise that in a consumer based society more consumer spending equals a better economy ! People should not dismiss how much Pensioners actually contribute to local economy. Way more than those who pay little Tax & spend it overseas & guaranteed to fail schemes.

Federal Treasury has advised the government that it will have to RAISE TAXES to finance the massive blowout in such areas as AGED WELFARE. Any increase in taxes would be unpalatable with voters, and a reduction in the amount paid to older Australians is necessary. With tougher economic times, it will be necessary to "trim the fat" from the Aged Welfare budget, that is for certain.

With the single Age Pension payment at a very generous $1,149.00 per fortnight now, a little "trimming of the fat", should see that halved to a more than reasonable $574.50 per fortnight, which is more than enough to keep old people happy and contented, they don't eat much. There would be plenty left over from the fortnightly spend for old folks to have a treat, such as a yummy packet of Licorice Allsorts once a fortnight, Agree! I have done the budget and I believe with a little frugal planning an old person can exist on less than $50 per week.