"Seriously, someone sitting on their bums is better than someone breaking into your home because they are hungry, or even than someone begging in the streets, or even than someone who cheats Centrelink (we pay many of the later anyway)."
I agree entirely, Yuyutsu. As an egalitarian, I think the first step is admitting anyone who is born hale and healthy, with average intelligence in an advanced country has already won the most important lottery.
Some people are literally 'born lucky', even if they never appreciate it -compared to the billions who aren't.
Looking after the less fortunate isn't just a moral imperative, it's ultimately just self preservation.
But now we are seeing 3rd generation dole bludgers. Literally. I know a family of three generations, none of whom have ever worked. In fact, one of them mentioned to me on dole day "I just have to go in and earn my wages". He was being quite serious. He regarded filling out the necessary paperwork and fronting up to the Centrelink office as his job.
If we must have unemployed (and we must) why not have well educated unemployed? Over 50's -such as I- are finding it harder to find jobs, but we can still learn, and many could teach; in fact in my experience the best way to gain real understanding of your subject is to teach it to someone else (although I'm not too sure about numerology).
But your point also brings to mind the question of retirement. It seems to be inevitable that retirement age will raised in coming years. This is only a tragedy for those who really don't like their jobs. I know many of my generation (those who proudly lay claim to 'an old fashioned work ethic') who hate their jobs, always have, and look forward to retirement in much the same way as younger folk look forward to weekends.
If these people could find jobs they actually enjoyed and believed in, they probably wouldn't want to retire.
See John Hatton is coming out of retirement to contest the next NSW election? At age 77.

Dear Grim,

As for the dole-bludgers, the thing to watch for is whether they are hiding an extra income. If they do, then it's criminal and should be dealt with accordingly. If they don't, then replacing the dole with a negative income tax only increases their incentive to work.

Regarding retirement, I am in exactly the same situation that you describe, but I hope to retire in a few years, then I can do more good things for myself and others without the money-connection. I will not wait for the formal retirement age because I don't expect to ever receive an age-pension anyway. I rather rely on my own savings.