Retiree Boom to Shape 2025 Election Outcomes

Older Australians now make up nearly 40% of voters, making them a key force in the upcoming federal election. With their numbers continuing to grow, both major parties must carefully consider policies that affect retirees, particularly around superannuation taxes and cost-of-living pressures. The challenge is balancing fiscal responsibility with policies that appeal to this powerful voting bloc.

Currently, Australians over 55 have reached their highest ever share of the electoral roll at 39%, with projections showing that retirees will eventually comprise half of all voters in the coming decades. This demographic has previously influenced elections, blocking proposals like franking credit changes in 2016 and pushing back against retirement tax reforms in 2019.

The 2025 election is expected to be tight, and superannuation tax changes remain a divisive issue. One party is pushing for a new tax on super balances above $3 million, while the other opposes it completely. Meanwhile, financial analysts argue that a sustainable retirement tax framework is necessary, though current plans may need revisions. Changing economic conditions continue to fuel retiree concerns over long-term financial security.

Beyond taxes, pension policies such as the deeming rate also pose political challenges. This rate, which impacts pension payments, has been frozen since 2020 despite rising interest rates. With a federal budget set for March 25 and a scheduled deeming rate review on July 1, both sides face pressure to navigate these financial policies carefully.

Meanwhile, Centrelink is struggling to process pension applications efficiently, with nearly 34,000 claims backlogged and an average processing time of 35 days. Advocacy groups warn that unresolved delays and inefficiencies in pension administration could add to retiree frustrations, further influencing voting decisions in 2025.

Source: The Australian, Your Investment Property Mag