Costello on the pension ...

Decisions, decisions, decisions!!

Former treasurer Peter Costello must be a worried man. The poor bugger has a dilemma - he has to decide when he will leave the federal parliament.

Peter Martin, The Age's economic correspondent, has taken a look at the options Costello has.

1. As a backbencher, the former treasurer is earning $127,000 a year. But calculations performed by The Age using tables prepared by the Finance Department suggest that if he retired instead, his annual income would jump to $176,633 courtesy of Australia's parliamentary superannuation scheme.

That payment would grow with increases in parliamentary salaries and would stay with the 51-year old for the rest of his life.

2. If he wants, he can halve his $176,633-a-year pension and turn the rest into a lump sum of $1.77 million.

Let's put all that into perspective.

Single old-age pensioners get $273 a week.

Yes, they get $14,196 a year.

Putting it another way, that's "a mere 8% of what the former treasurer will make."

Perhaps Costello is looking for a shoulder to cry on as he contemplates how he'll survive after he departs the Canberra scene.