We can't afford to support the boomers... so why give more now?

I picked up a copy of The Financial Review today to be greeted with the headline "Grim future for tax cuts", with Peter Costello predicting that future generations will not be able to afford tax cuts, with forecasts that the ageing population will fuel a rise in heath spending and age pensions. This was all part of the Federal Government's Intergenerational Report.

This news shouldn't surprise. However, wasn't it Peter Costello who came out last May promising tax free retirements for Baby Boomers and almost doubling the Assets test for Centrelink entlements, effectively allowing a couple to have $800,000 in assets and still access Age Pension?

"The key point is to keep expenses controlled. We have got to be disciplined with our financial management to keep our budget in surplus. That's very important," Mr Costello told the Nine Network.

Mr Costello has provided a lifetime burden on the younger generations. These tax savings & increased Social Security benefits have to be funded some how. As much as we hate to think it, the mining boom isn't going to last forever!