​

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.

 

[Brian S]

Tell us the pension age at the start of our working life, not part way through it. Recognise that in some types of work, keeping going until 70 is not feasible. And ensure age discrimination is removed in the workplace and job selection for older workers. Only then would a general move to 70 for age pension be fair.

 

[debjoel21]

Imagine being a bricklayer until you're 70.....no way...

 

[MrCejay]

agree with Brian S should have given us all the info on how to live a good healthy life years ago
advertising media from when media got to be part of our lives 1950s on - smoking drink a few more
eat takeaways all good for you and as for exercising never was mentioned - media any different today ???
am into 70s and fit enough to want to go back working fulltime on mines told am too old
but then look at getting older gents around me late 50sn 60s flat out trying walk let alone work
government wants to put money into aged care assisting peoples whose bodies been ruined by conditions we have lived with - and if one does work "we don't tax you" no just take a dollar for every two you earn

 

[bindios77]

​

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.

 

[bindios77]

Yes! Good idea!

 

[Kayer02]

I am 62. Have many medical problems and am unable to drive due to medications and disabilities, However I can not get any type of pension, I have to go out and find a job. Do you realize how hard it is to get a job at my age no matter at 70. Age discrimination is well and truly alive in the work place and the young people are the main culprits. No understanding or compassion.

 

[bindios77]

Yes! Good idea!

 

[Lia]

agree with Brian S should have given us all the info on how to live a good healthy life years ago
advertising media from when media got to be part of our lives 1950s on - smoking drink a few more
eat takeaways all good for you and as for exercising never was mentioned - media any different today ???
am into 70s and fit enough to want to go back working fulltime on mines told am too old
but then look at getting older gents around me late 50sn 60s flat out trying walk let alone work
government wants to put money into aged care assisting peoples whose bodies been ruined by conditions we have lived with - and if one does work "we don't tax you" no just take a dollar for every two you earn

I think we are they only country to have to reach 70 to receive the pension. So so sad.

 

[Jill57]

Tell us the pension age at the start of our working life, not part way through it. Recognise that in some types of work, keeping going until 70 is not feasible. And ensure age discrimination is removed in the workplace and job selection for older workers. Only then would a general move to 70 for age pension be fair.

You certainly could not continue as a secondary teacher till the age of 70 when I started working the retirement age was 65 then they changed it to 67

 

[batonbeat]

How about they start at the other end and instead of increasing payments to the young they look at us,who, have put into the system all our lives and got SFA in the last budget

 

[ElleJay]

I am 62. Have many medical problems and am unable to drive due to medications and disabilities, However I can not get any type of pension, I have to go out and find a job. Do you realize how hard it is to get a job at my age no matter at 70. Age discrimination is well and truly alive in the work place and the young people are the main culprits. No understanding or compassion.

Same here, I'm also 62 and have been unemployed since 2016. Now my medical conditions prevent me from working.

 

[SGH]

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 be a 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?

 

[Observer]

You certainly could not continue as a secondary teacher till the age of 70 when I started working the retirement age was 65 then they changed it to 67

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.

 

[Aussie all the Way]

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 used the wrong word there meant to say National Service for those on the long term unemployment list. Either way unfortunately it won't happen too many bleeding hearts in this country.

 

[Observer]

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.

 

[SGH]

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.

Get a job or go to jail. I like it. And these three generations of never having worked a day in their life, I don't use the words that I would like to do to them.

 

[Observer]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[piggyp]

​

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.

 

[piggyp]

Viva La France .As long as the rules apply yo all our so called leaders and public servants and all government and local government NO Exemptions cannot wait for that one,Cut or toughen unemployment rules and government wasteful spending such as foreign aid with Ukraine a prime example ,Close Penny Wongs bank account.