Pension age increase will see unemployed, sick Aussies struggle

Friday, Jun 12, 2015

Federal government’s plans to increase the pension age to 70 will cause a quarter of Australians to struggle financially in retirement, research has found.

AMP.NATSEM’s report Going the distance — working longer, living healthier predicts less than half of 60 to 74-year-olds will still be working in 2035, despite the government lifting the age pension access age to 70, Money Management reports.

The report said poor health will affect 25% of Australians aged 60 and over, putting their ability to save in doubt.

“In 2035, the majority of retired or unemployed Australians in their sixties will not have enough superannuation for retirement,” it said. “If the pension age is raised to 70, many Australians will need to consider working longer to have an income and build more retirement savings.”

“The ability of Australians to work longer is directly linked to health with a much higher chance those aged over 60 will work full or part-time when they assess their health status as good, very good or excellent rather than fair or poor.”

The report said the challenge lies with the nation and employers to create supportive frameworks for future generations that better smooth the transition from work to retirement.