What does the Intergenerational Report mean for us? It's a question that households across Australia are asking themselves tonight.
Canberra is talking budget surpluses, but the economics of the average family household is somewhat simpler.
The government's Intergenerational Report has been released today and Treasurer Joe Hockey warns if nothing is done to counter the impact of an ageing population, it will hurt economic growth and prosperity.
The report has reignited debate on health and welfare spending, with indications the retirement age may again be lifted.
Michael Oravec, father of five and grandfather of eight, told SBS that the report lacks common sense.
"If I have a job that requires hard work physical work. How can I work when I'm 65 -70?” he said.
“It may be a bureaucratic idea but it's never going to work."
The CEO of the Council On The Ageing Ian Yates wants the government to engage senior citizen representatives to discuss the way forward in supporting an ageing Australia.
"It [the government] needs to get stakeholders engaged in redesigning our retirement income system, not just treasury boffins taking a scalpel to the people with the least - people on the full pension,” he said.
The report also predicted health spending under the Abbott government will increase from 4.2 per cent of gross domestic product in 2014-15 to 5.5 per cent of GDP in 2054-55.
It equates to an extra $3700 dollars per for person, figures that experts believe the government will use to back cuts on health spending.
Nicholas Reece, Principal Fellow University of Melbourne, says it's ironic that the government wants to cut spending for the future generations when the Baby Boomers benefited the most from federal welfare.
"The Abbott government talks about intergenerational theft - if they really want to have a look at that they should look in the mirror,” he said.
The potential cuts are also concerning for mother of three, Veronica Slavik.
The part-time worker says she relied on Medicare to help her eldest daughter receive a cochlear ear implant and cut backs in funding could hit her family hard.
"You kind of think, well you'll make do with whatever comes your way, but we've been fully funded with her so I can't imagine what it would be like if we weren't,” she said.
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