Labor won't support tougher pension asset testing

THE Federal Opposition says it will not support $2.4 billion worth of pension changes announced in last month's budget.

The pension changes would have seen 91,300 self-funded retirees described as "liquid assets millionaires" lose the part pension because of tougher assets test.

But the government claimed 50,000 part pensioners would be better off because under the proposed changes they would receive a full pension.

Opposition Leader Bill Shorten said on Tuesday Labor had carefully considered the proposal.

He was speaking in a media conference that was described by Sky News political commentators as a complete train wreck because Mr Shorten did not understand his own party's past and present policies.

Mr Shorten said Labor was unwilling to support the proposed changes.

"Independent analysis shows that these new cuts will affect half of all new retirees within 10 years," he said.

"It shows more than a million retirees will be affected by these cuts, including 700,000 people who will retire in the next decade.

"These are not rich people, they are not on high incomes and they deserve dignity and security in their old age."