Post by Banjo on Sept 3, 2017 7:56:19 GMT 7
To save $3.6b, more than 375,000 must work longer
ANNIKA SMETHURST, News Corp Australia Network
NEW figures have revealed that to save the government its trumpeted $3.6 billion in aged pension payments, more than 375,000 Australians now in their late 50s and looking forward to retirement will have to work longer under a plan to lift the pensions age to 70.
The unpopular budget repair measure to put the pension age up to 70 was announced in 2014 and remains on the federal Government’s books despite the Coalition walking away from most of the “zombie measures” unveiled in the first Abbott-Hockey budget.
Under the plan, the pension age will gradually increase by six-month increments from 67 years to 70 every two years over the decade starting in 2025.
The Department of Social Service has released new data on the pension change, which shows just how the federal government will save its anticipated $3.6b over the first four years.
About 51,300 retirees will be affected in the first year of the policy in 2025-2026.
That number will increase to nearly 68,000 the following year and a total of 375,000 will be affected by the new age requirements in those first four years.
Social Services Minister Christian Porter reaffirmed the commitment to increase the pension age, saying it was one of the biggest expenditure items in the federal budget, costing $43.1 billion in 2015-16.
He said Australians are healthier and living longer than ever before and the government needed to ensure the pension system was sustainable.
“As we live longer and are healthier, it’s reasonable to expect more people will want to remain active through work,” he said.
Council on the Ageing chairman Ian Yates said he was not opposed to the change as long as it is accompanied by an increase in Rental Assistance and Newstart Allowance payments as well as more incentives to help older Australians stay in the workforce.
“Age discrimination is real,” Mr Yates said.
“Keeping older people in the workforce is the key and while the government has started to tackle this they need to ramp up their efforts.”
Mr Yates also warned the Government against changing the eligibility for the Disability Support Pension saying older Australians that are under the new pension age need a safety net if they are no longer able to work due to poor health or disability.
Labor’s social services spokeswoman Jenny Macklin said increasing the pension age to 70 was not only unfair, it will worsen inequality.
“Australians currently in their 50s who are planning for their retirement now will be stung by this change,” she said.
“The median age at death for people living in remote Australia is 73.8 compared to 82.3 for Australians living in major cities.”
“This change to the pension age unfairly hurts Australians living in regional and remote Australia where life expectancy is lower.”
www.dailytelegraph.com.au/news/nsw/to-save-36b-more-than-375000-must-work-until-they-are-70/news-story/8c00de336889c615ca1666f4e7541ec1
ANNIKA SMETHURST, News Corp Australia Network
NEW figures have revealed that to save the government its trumpeted $3.6 billion in aged pension payments, more than 375,000 Australians now in their late 50s and looking forward to retirement will have to work longer under a plan to lift the pensions age to 70.
The unpopular budget repair measure to put the pension age up to 70 was announced in 2014 and remains on the federal Government’s books despite the Coalition walking away from most of the “zombie measures” unveiled in the first Abbott-Hockey budget.
Under the plan, the pension age will gradually increase by six-month increments from 67 years to 70 every two years over the decade starting in 2025.
The Department of Social Service has released new data on the pension change, which shows just how the federal government will save its anticipated $3.6b over the first four years.
About 51,300 retirees will be affected in the first year of the policy in 2025-2026.
That number will increase to nearly 68,000 the following year and a total of 375,000 will be affected by the new age requirements in those first four years.
Social Services Minister Christian Porter reaffirmed the commitment to increase the pension age, saying it was one of the biggest expenditure items in the federal budget, costing $43.1 billion in 2015-16.
He said Australians are healthier and living longer than ever before and the government needed to ensure the pension system was sustainable.
“As we live longer and are healthier, it’s reasonable to expect more people will want to remain active through work,” he said.
Council on the Ageing chairman Ian Yates said he was not opposed to the change as long as it is accompanied by an increase in Rental Assistance and Newstart Allowance payments as well as more incentives to help older Australians stay in the workforce.
“Age discrimination is real,” Mr Yates said.
“Keeping older people in the workforce is the key and while the government has started to tackle this they need to ramp up their efforts.”
Mr Yates also warned the Government against changing the eligibility for the Disability Support Pension saying older Australians that are under the new pension age need a safety net if they are no longer able to work due to poor health or disability.
Labor’s social services spokeswoman Jenny Macklin said increasing the pension age to 70 was not only unfair, it will worsen inequality.
“Australians currently in their 50s who are planning for their retirement now will be stung by this change,” she said.
“The median age at death for people living in remote Australia is 73.8 compared to 82.3 for Australians living in major cities.”
“This change to the pension age unfairly hurts Australians living in regional and remote Australia where life expectancy is lower.”
www.dailytelegraph.com.au/news/nsw/to-save-36b-more-than-375000-must-work-until-they-are-70/news-story/8c00de336889c615ca1666f4e7541ec1