Australia's Pension Age
In attempting to balance the budget, the Coalition has reaffirmed their desire to raise the pension age to 70 by 2035. Currently, the pension age is set to increase from 65 to 67 years during July 2017 and July 2023. After 2023, the government will be able to legislate further changes.
This proposal would continue in a similar trajectory from July 2023 to July 2035 by increasing the pension age by 6 months every 2 years. Consequently, the individual pension age will be dependent on year of birth.
A similar proposal was put forward in 2014 by the Coalition government, but failed due to a lack of Parliamentary support and opposition from union groups. Interestingly, this proposal aimed to raise the pension age to 70 years by 2053, instead of 2035 as currently suggested.
If approved, the pension age will become one of the highest in the developed world. With Denmark’s pension age set to rise to 74 years, the Netherlands and Italy to 71 years, Australia will have the fourth highest pension age. This would supersede the average OECD country pension age of 65.5 years.
Should the pension age be raised?
Smartcompany, 'Government to push on with raising the retirement age to 70'.
Sydney Morning Herald, 'Coalition won't retire its policy to lift pension age to 70'.
Above, ref. 1.
Superguide, 'Age Pension age increasing to 67 years'.
Above, ref. 4.
Above, ref 2.