Post by Banjo on Nov 22, 2013 7:52:23 GMT 7
Raise pension age to 70 'or greying will cripple economy'
The Productivity Commission has suggested raising taxes, lifting the retirement age, and taking a slice of a pensioner's home to pay for Australia's ageing population.
The key Federal Government advisory body's latest research report warns of the rising financial strains of health and aged-care costs.
It says lifting the pension age to 70 would provide savings of around $150 billion over 50 years.
It warns the longevity of Australians has been underestimated and that taxes would need to rise 21 per cent unless steps are taken to pay for Australia's extra health and aged-care costs.
The pension age is already being raised from 65 to 67, but Productivity Commission chairman Peter Harris wants it lifted higher.
"We'd like to provide some better incentives for people to think about continuing to work, because an ageing population will cost us," he said.
"At the time we introduced the aged pension arrangement in 1900 or so, people had a reasonable expectation of about 13 years of retirement.
For a person born in 1986, now they have an expectation of a period outside work - which includes both a longer period of education but also primarily a longer period of retirement - of about 30 years."
However, Australian Council of Trade Unions (ACT) national secretary Ged Kearney said lifting the pension age is not the only solution.
"To just say you will raise the retirement age is, I think, very short sighted and way too simplistic," she said.
"It's ironic also that we are saying that if we don't raise the retirement age we're going to have to raise taxes at a time when the government has made a categorical decision not to tax super profits on mining."
National Seniors Australia chief executive officer Michael O'Neil says workplace ageism continues to be a problem for those in their late 50s and older.
"You can whistle dixie all you like about shifting to age 70," he said.
"At the moment, if you lose your job at 55 you are out of work for 72-plus weeks on average and that excludes the number of folk who are shifted onto the disability pension.
"You really are just sailing in the wind at suggestions of age 70 for the pension."
The group COTA Australia, which represents older people, says removing age discrimination in the workplace should be a priority.
"We don't think there's any one silver bullet, so we don't oppose it if it comes out of a consensus," chief executive Ian Yates said.
"If taxpayers as a whole want to pay significantly higher taxes we can have a more generous pension, we can have free health care, we can have free aged care.
"If the taxpayers don't then we have to work out what the users pay arrangements that we will have."
www.abc.net.au/news/2013-11-22/productivity-commission-recommends-raising-pension-age-to-70/5109630
The Productivity Commission has suggested raising taxes, lifting the retirement age, and taking a slice of a pensioner's home to pay for Australia's ageing population.
The key Federal Government advisory body's latest research report warns of the rising financial strains of health and aged-care costs.
It says lifting the pension age to 70 would provide savings of around $150 billion over 50 years.
It warns the longevity of Australians has been underestimated and that taxes would need to rise 21 per cent unless steps are taken to pay for Australia's extra health and aged-care costs.
The pension age is already being raised from 65 to 67, but Productivity Commission chairman Peter Harris wants it lifted higher.
"We'd like to provide some better incentives for people to think about continuing to work, because an ageing population will cost us," he said.
"At the time we introduced the aged pension arrangement in 1900 or so, people had a reasonable expectation of about 13 years of retirement.
For a person born in 1986, now they have an expectation of a period outside work - which includes both a longer period of education but also primarily a longer period of retirement - of about 30 years."
However, Australian Council of Trade Unions (ACT) national secretary Ged Kearney said lifting the pension age is not the only solution.
"To just say you will raise the retirement age is, I think, very short sighted and way too simplistic," she said.
"It's ironic also that we are saying that if we don't raise the retirement age we're going to have to raise taxes at a time when the government has made a categorical decision not to tax super profits on mining."
National Seniors Australia chief executive officer Michael O'Neil says workplace ageism continues to be a problem for those in their late 50s and older.
"You can whistle dixie all you like about shifting to age 70," he said.
"At the moment, if you lose your job at 55 you are out of work for 72-plus weeks on average and that excludes the number of folk who are shifted onto the disability pension.
"You really are just sailing in the wind at suggestions of age 70 for the pension."
The group COTA Australia, which represents older people, says removing age discrimination in the workplace should be a priority.
"We don't think there's any one silver bullet, so we don't oppose it if it comes out of a consensus," chief executive Ian Yates said.
"If taxpayers as a whole want to pay significantly higher taxes we can have a more generous pension, we can have free health care, we can have free aged care.
"If the taxpayers don't then we have to work out what the users pay arrangements that we will have."
www.abc.net.au/news/2013-11-22/productivity-commission-recommends-raising-pension-age-to-70/5109630