Viral sign from a tradie sparks wider debate: Effects of raised retirement age extend beyond seniors
- Replies 36
At the Seniors Discount Club, we consider managing finances and planning for retirement a key concern for our members. We know you have worked hard to contribute to this nation's prosperity.
Unfortunately, secure and comfortable retirement is becoming more challenging to attain with each passing year. We aim to keep you updated on issues concerning your future security and comfort, and that's just what this article is all about.
Recently, a photograph of a determined Aussie tradie asking a valid question about our nation's retirement age gained attention online—reigniting a long-debated discussion. The photo showcased the tradie's protest against a plan to raise the pension eligibility age, evoking a widespread response from thousands.
The sign reads, 'Only a bloke who's worked in an office his whole life would think you can work until you're 70.'
![Screen Shot 2023-06-30 at 11.48.01 AM.png Screen Shot 2023-06-30 at 11.48.01 AM.png](https://seniorsdiscountclub.com.au/data/attachments/23/23741-148a37a9cc066921eb8c3972627f65b4.jpg)
The debate gained momentum with the upcoming increase in Australia's pension age to 67 in July, with further speculation about the retirement age possibly rising to 70 by 2050. This spurred a wave of concern amongst the hardworking Aussies, many believing 70 is too long to maintain strenuous work routines.
'I've been a sign painter climbing ladders since I was 16. I'm 67 now and had a hip replacement three years ago due to wear and tear,' one worker shared.
'We need to elect a few tradies into parliament and start getting things back on track,' another expressed, supporting the unheard voices of physical labourers everywhere, suggesting that the retirement age should be even younger.
Their concerns were clear, 'wearing out' and burnout are real, and these aren't just limited to labourers but other professions demanding physical exertion like retail work.
Dr Lisa Denny, a workforce demographer and Adjunct Associate Professor with the Institute for Social Change at the University of Tasmania, shed light on this issue. She spoke about another demographic that needs to brace for an extended career—the young Australians just entering the workforce.
According to her, in the current economic climate, overwhelmed by high inflation, rising rent and interest rates, low wage growth, and cost of living pressure, the ability to contribute more to savings and superannuation is indeed 'severely curtailed'.
'With homeownership being harder these days, the likelihood that younger generations will have to work for longer is pretty high,' Dr Denny explained—a sobering outlook if there ever was one.
A team of academic experts, led by Professor Hanlin Shang from Macquarie University Business School, added to these concerns with the reveal of their report. It suggests three additional increases in the pension age over the next 27 years, aiming for a retirement age of 68 by 2030, 69 by 2036, and eventually 70 by 2050.
Their research highlighted the impacts of Australia's low birth rate on the future workforce.
They warn that fewer people in the working age group and more retirees will increase the old age dependency ratio (OADR), burdening the government pension system. With a higher OADR, fewer working people will support the elderly population.
These pressing issues aren't just confined to tradies or those doing hard physical labour. Now more than ever, it is essential for everyone to plan and prepare for retirement appropriately.
Early planning and saving for the future is essential, regardless of occupation.
For those with children or grandchildren, Dr Denny offered some advice. She urges them to understand what superannuation is for, contribute more, and not wait until they're in their 60s.
'If we don't want to work until we're 70, then we need to make sure we're planning appropriately for that,' she said.
Those approaching retirement today have the benefit of the favourable housing market. She pointed out that 'Homeownership has always been something to help shore up retirement,' and the current retirees might have done well in the housing market, setting themselves up for a more comfortable retirement.
Regarding retirement, it's important to remember that one size doesn't fit all. This complex matter involves several factors, including age, occupation, health, personal savings, and homeownership. It's crucial to be flexible and plan according to individual circumstances, regardless of profession.
In the end, one thing is clear: Australians of all ages need to start planning for their financial futures now more than ever. The trend of increasing retirement age is concerning, and it's time for us to assess our financial plans and adapt them to a potentially longer working life. By doing so, we can ensure a secure and enjoyable retirement!
We'd love to hear your thoughts on this article. Feel free to share them with us in the comments!
Unfortunately, secure and comfortable retirement is becoming more challenging to attain with each passing year. We aim to keep you updated on issues concerning your future security and comfort, and that's just what this article is all about.
Recently, a photograph of a determined Aussie tradie asking a valid question about our nation's retirement age gained attention online—reigniting a long-debated discussion. The photo showcased the tradie's protest against a plan to raise the pension eligibility age, evoking a widespread response from thousands.
The sign reads, 'Only a bloke who's worked in an office his whole life would think you can work until you're 70.'
![Screen Shot 2023-06-30 at 11.48.01 AM.png Screen Shot 2023-06-30 at 11.48.01 AM.png](https://seniorsdiscountclub.com.au/data/attachments/23/23741-148a37a9cc066921eb8c3972627f65b4.jpg)
The spike in retirement age affects not only hard labour workers but also extends to other demographics. Credit: Shutterstock.
The debate gained momentum with the upcoming increase in Australia's pension age to 67 in July, with further speculation about the retirement age possibly rising to 70 by 2050. This spurred a wave of concern amongst the hardworking Aussies, many believing 70 is too long to maintain strenuous work routines.
'I've been a sign painter climbing ladders since I was 16. I'm 67 now and had a hip replacement three years ago due to wear and tear,' one worker shared.
'We need to elect a few tradies into parliament and start getting things back on track,' another expressed, supporting the unheard voices of physical labourers everywhere, suggesting that the retirement age should be even younger.
Their concerns were clear, 'wearing out' and burnout are real, and these aren't just limited to labourers but other professions demanding physical exertion like retail work.
Dr Lisa Denny, a workforce demographer and Adjunct Associate Professor with the Institute for Social Change at the University of Tasmania, shed light on this issue. She spoke about another demographic that needs to brace for an extended career—the young Australians just entering the workforce.
According to her, in the current economic climate, overwhelmed by high inflation, rising rent and interest rates, low wage growth, and cost of living pressure, the ability to contribute more to savings and superannuation is indeed 'severely curtailed'.
'With homeownership being harder these days, the likelihood that younger generations will have to work for longer is pretty high,' Dr Denny explained—a sobering outlook if there ever was one.
A team of academic experts, led by Professor Hanlin Shang from Macquarie University Business School, added to these concerns with the reveal of their report. It suggests three additional increases in the pension age over the next 27 years, aiming for a retirement age of 68 by 2030, 69 by 2036, and eventually 70 by 2050.
Their research highlighted the impacts of Australia's low birth rate on the future workforce.
They warn that fewer people in the working age group and more retirees will increase the old age dependency ratio (OADR), burdening the government pension system. With a higher OADR, fewer working people will support the elderly population.
These pressing issues aren't just confined to tradies or those doing hard physical labour. Now more than ever, it is essential for everyone to plan and prepare for retirement appropriately.
Early planning and saving for the future is essential, regardless of occupation.
For those with children or grandchildren, Dr Denny offered some advice. She urges them to understand what superannuation is for, contribute more, and not wait until they're in their 60s.
'If we don't want to work until we're 70, then we need to make sure we're planning appropriately for that,' she said.
Those approaching retirement today have the benefit of the favourable housing market. She pointed out that 'Homeownership has always been something to help shore up retirement,' and the current retirees might have done well in the housing market, setting themselves up for a more comfortable retirement.
Key Takeaways
- The eligibility age for the Australian pension is set to increase to 67 from July 1st this year, with a suggestion that it may need to rise to 70 by 2050, prompting societal debate.
- The spike in retirement age affects hard labour workers and extends to other demographics.
- Academics led by Professor Hanlin Shang from Macquarie University Business School suggest three additional increases in the pension age over the next 27 years.
- Workforce demographer Dr Lisa Denny argued that younger Australians might have to work for longer due to the difficulty of obtaining homeownership and other economic pressures.
Regarding retirement, it's important to remember that one size doesn't fit all. This complex matter involves several factors, including age, occupation, health, personal savings, and homeownership. It's crucial to be flexible and plan according to individual circumstances, regardless of profession.
In the end, one thing is clear: Australians of all ages need to start planning for their financial futures now more than ever. The trend of increasing retirement age is concerning, and it's time for us to assess our financial plans and adapt them to a potentially longer working life. By doing so, we can ensure a secure and enjoyable retirement!
We'd love to hear your thoughts on this article. Feel free to share them with us in the comments!