Ben Squires
Retirement Income

Government says increasing pension age is “sensible”

Working well into your 70s might not seem an appealing prospect, but it’s one that could soon become a reality with Social Services Minister Christian Porter sticking by the government’s plans to incrementally lift the pensions age.

Lifting the pension age from 67 to 70 is one of the few “zombie measures” the government has stuck with from its ill-fated 2014/15 budget. The move is designed to counteract the “enormous strain” on the age pension system, with projections suggesting the number of Australians aged 65 and over will double by the year 2054/55.

Mr Porter said, “Clearly, sensible, measured reform is needed to ensure a sustainable age pension system that provides a safety net for those that require it.”

The Social Services Minister was also quick to point out Labor’s increase to the pension aged from 65 to 67, which was announced back in 2009.

He said, “Subject to legislation, we are proposing to progressively increase the age pension age over a much longer period than Labor did, from 67 to 70 years, over 10 years from 2025 to 2035,”

No one born before January 1, 1966, would be affected by the change.

What do you make of these changes? Do you think it’s the right thing to do?

Tags:
Finance, Retirement Income, Pension, Government