​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

 

[HildyT]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

 

[Don’sown]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

Can not argue against this idea as there is already a lot of people taking early retirement and taking money out of the market just to enjoy an early retirement. Myself I was not happy having to take retirement at 75 as I was more than capable of working just as hard as others half my age although I was told that the Plant Engineer pushed for my early retirement as I had forgotten more than he knew- funny thing he was forced out because of his incompetency with in 6months of my retirement.
Best thing that happened as I then obtained a job as a lollipop man which enabled me to continue working for a few hours per day and meeting a whole lot of interesting people.

 

[HildyT]

Shameful! When you have a politician resign from his job at 55 years of age then receive more than a quarter of a million dollars for the rest of his life courtesy of the taxpayer??

 

[GayleSchouten]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

Give us a break! The Government has re-nigged on the original deal I had when I started work. Pay your taxes they said and when you turn 60 you will get the pension! Now they act like they’re doing us a favour by “allowing” us to work a few extra hours a week because they can’t get the young ones to work - they’re benefits are too good to give up! Please, you’ve gotta be kidding!

 

[Rob44]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

What a miserable tight-arsed bastard of a country is Australia. Change the income tax system so that we can afford a government guaranteed pension that is not below the poverty line. 65c in the $1top rate tax with appropriate graduations down to zero for those with sweet FA to live on.

 

[Trudi]

I got sick when I was 47, luckily for me I have a very understanding husband who was more concerned about my health than my income. We lost quite a lot of my super in one of those crashes we had to have and it never really recovered by the time I was old enough to bea self funded retiree (what a joke that is) then they move the goal posts and change the retirement age anyway; isn't that a bonus. You know what?
We are always going to lose, they don't listen to seniors on any subject because aren't we a bunch of dottering old fools; what would we know?

"by the time I was old enough to be a self funded retiree (what a joke that is) then they move the goal posts and change the retirement age anyway"

Assuming you were born before 1960, you would have been able to access super when you turned 55 (preservation age).

There is no longer such a thing as "retirement age", however, there is a pension age.

 

[Trudi]

I am 63 and they changed mine from 65 to 67 before l could retire. I am not of good health. Fortunately, an inheritance, and some smart investing, will help some.

Wow! I am 76 and I retired when I was 66!

 

[saundy]

I fully agree with Aussie all the Way get the younger generation working instead of sitting on their bums playing video games etc all day, Heaven help Australia when it comes time for them to run the country and companies Australia wide a lot of them will have zero experience in life.
I started working when I was 17 years old retired when I was 67 only because I had a major injury and I couldn't forfill my duties of t he position.
There should be no unemployment benefits paid during fruit picking seasons send all the unit fruit picking if they refuse no dole if they steal etc chuck their arse's in jail for the duration of the picking season, To soft for far to long the country can't afford it.

 

[KSS]

This is all very well and I broadly support it.

However, raising the age pension eligibility age is not enough. There have to be changes to other laws at the same time so older workers are not disadvantaged. For example, if you have reached your age pension eligibility age and then get made redundant, the ATO deems you to not be a genuine redundancy but early retirement and therefore taxes your redundancy pay. Be under your age pension eligibility age and the redundancy payment is tax-free! Then there is workers' compensation. If you are injured at work and you are over 65, you may only be compensated for your injuries for one year. Of course, you are also not eligible for NDIS because you are over 65.

They cannot simply change one law without unintended consequences for other laws all of which are based on legalised age discrimination.

 

[ElCee]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

The change doesn't impact me, but it will impact my children. Some very lucky people are fabulous at 70. Full of running, however for more, health is more of a concern. Perhaps instead of raising the pension age the pollies should brainstorm better ways to look after older citizens who have supported this country through their best years.

 

[James53]

When I started working at18yrs old in 1978 the retirement age for women was 60, men 65, returned service men 60, now it is up for grabs. I think that people who work as Paramedics, Police, Firemen/women you know those very mentally challenging , stressful jobs and labour intensive should retire at 60, luckily they still consider that you have done your bit for a returned service man because they still retire at 60. Maybe they should STOP paying the blood sucking retired Politicians all the perks they get when they leave, I should think that their MASSIVE Super should be enough for them to live on, unlike us mere mortals who have actually worked for a living and gone through a lot of ups and downs during our working life. Maybe also they should start looking at the younger people who have been unemployed for longer than 1 year and get them into the work force instead of paying them MORE to sit on their arses and do NOTHING for their money, or get them Volunteering, or and I personally like this one bring back CONSCRIPTION for those on the long term unemployment list.

Bring back conscription...No,Never..look what we do to our fulltime soldiers...what would we do to the poor conscripts!!!

 

[Klaus A]

I think the retirement age of 65 was correct, but you should only get the pension if you have worked and paid taxes in this country for 30 years or more.
But than the new jobseeker for over 60 is nearly as high as the pension anyway. To live comfortably you need to do some extra work anyway. Not that much difference.

 

[Lynjw]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

It’s ridiculous. My health is declining yet I’m forced to work another 14 months til I can get the pension thanks to continual pension age increases. No way will I have enough super. The more older Aussies working full time the more younger people on welfare without jobs. Also it will be detrimental to our health which means more pressure on the healthcare system. It’s a catch 22 situation.

 

[Squizzy1]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

Well, that would not go down well in France, but apathetic Aussies that's a different beast. I guess it's official, work till you drop, all these medical advancements are to make you work longer, not to necessarily have a better quality or longer retirement.

 

[nuget]

​

Dark clouds loom on the horizon for Aussie pensioners, although luckily, the storm is further away than first thought. According to new research published in the prestigious Australian and New Zealand Journal of Statistics, Australians born after January 1957 could soon face a considerable retirement obstacle.

From July 1, 2023, anyone born after January 1957 will need to wait until they reach 67 years of age to claim the pension. It’s part of the Liberal party’s original 2014 Federal Budget plan to try and keep the country’s pension system viable, and it looks like they’re only getting started.

New modelling by Macquarie University statistician Professor Hanlin Shang and his colleagues has predicted something a little more alarming than the rise to 67. If their prediction is correct, we could likely be looking at increasing the pension age to 70 years by the year 2050.

View attachment 21086

Is your retirement plan at risk? Image Credit: Shutterstock

Why are the experts making such a potentially disheartening call? As Professor Shang has uncovered, one cause behind it is our current ‘state of population’. Recent statistics revealed that Australia’s birth rate is at a historic low, which means fewer people are entering the workforce – a stark contrast to the increasing numbers in the population over the pension age.

'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher. What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system,' Professor Shang says.

To try and bring the all-important OADR value of 23% back to a viable level, Professor Shang’s models suggest that the pension age should be increased to 68 years by 2030, 69 years by 2036 and 70 years by 2050.

The reasoning behind it makes sense, although it doesn’t make the news any easier to swallow. As Professor Shang points out, 'Thanks to advancements in medicine and technology, people are living longer, although not necessarily healthier. The number of people working is decreasing, and birth rates are low. In 1961, the total birth rate was 3.5 babies per female. In 2020, this was 1.58.'

So, unfortunately, it does look like more changes to the pension age are on the way. We can only hope that our Government will pay careful attention to the situation and take a more gradual approach to any increases instead of rushing in like the frenzied situation recently seen in France.

Key Takeaways

• Expert modelling suggests that the Australian pension age should be increased to 70 by 2050, which is 15 years later than the original Liberal party plan from 2014.
• Australia's low birth rate and an ageing population are contributing to an increased old-age dependency ratio, putting a burden on the government pension system.
• The recommended increase to the pension age involves a gradual trajectory to maintain the old-age dependency ratio at 23%, with target ages of 68 by 2030 and 69 by 2036.
• Potential solutions to support the pension age and system include increasing the total fertility rate through government policies and increasing the number of migrants to Australia.

If you’re already on the age pension, then it's likely that this change won't affect you too much, but some members might like to think about putting away extra money into their superannuation so that they can enjoy their golden years without needing to worry.

Will this change impact you? Do you have any thoughts or opinions on increasing the pension age? We would love to hear from you in the comments.

This is all about control while they keep giving to themselves they should not be allowed to touch their own pension until they reach the same age as the rest of us.

 

[MrCejay]

pensioners most discriminated people in Australia and by whom. Taxed at 50% loss of pension plus ordinary tax on money earned. This can mean you paying at 70%. If one gets the chance to work cannot pay into super any extra other than what employer must pay check the list affecting pensioners and it goes on
If one is a politician can retire well before retirement age get the pension and then can go get a job using contacts have picked up whilst a Pollie. Get paid not lose pension plus free travel and get on a gravy train
and most as a pollie have money before they start then get a wage we dream of
We need to start a political party - grey haired party - with our numbers out there think we could be 25 to 30 % of the voters then maybe they would listen if we decided to pull the plug on their links benefits etc

 

[Gsr]

When I started working at18yrs old in 1978 the retirement age for women was 60, men 65, returned service men 60, now it is up for grabs. I think that people who work as Paramedics, Police, Firemen/women you know those very mentally challenging , stressful jobs and labour intensive should retire at 60, luckily they still consider that you have done your bit for a returned service man because they still retire at 60. Maybe they should STOP paying the blood sucking retired Politicians all the perks they get when they leave, I should think that their MASSIVE Super should be enough for them to live on, unlike us mere mortals who have actually worked for a living and gone through a lot of ups and downs during our working life. Maybe also they should start looking at the younger people who have been unemployed for longer than 1 year and get them into the work force instead of paying them MORE to sit on their arses and do NOTHING for their money, or get them Volunteering, or and I personally like this one bring back CONSCRIPTION for those on the long term unemployment list.

Totally agree, if we have to wait til 70 to get the pension so should politicians, after all they don’t work anywhere near as hard as the general workforce and they earn much more and accrue huge amounts of super, which they don’t deserve. Then when they get to 70 they should get the same pension as everyone else, no perks and lurks. The budget would return to a huge surplus pretty quickly if ex politicians were treated the same as us, none of them would qualify for a pension with the money they rip off the taxpayers while they are politicians. It is disgraceful the greed they display while there are so many people of all ages struggling to survive.

 

[kerrikennel]

And yet the politicians get their pension when voted out regardless of their age. What utter bull plop!!

 

[Robbo3006]

If the government left the pension fund money alone that we paid into since after the war we wouldn't have this problem, trillions of dollars went from pension fund to tax revenue and DISAPPEARED, our government is a disgrace, they work for Us but treat Us like plebians.

 

[Rex Jones]

I think that the retirement age should be fitted to the individual. If you are capable of working until you are 70 years of age then fine, keep working, lots of people want to anyway. Some people however are not going to be able to work from a much younger age and should not be penalised for that by not being able to receive a pension. Like driving a car, have a doctor decide what capability you have with regards to work and have a payment to compensate those who need it.