The proposal to increase eligibility for the age pension to 70 was driven by budget austerity, but it overlooked the vulnerable people who could not wait that long.
Tag Archives | retirement age
Peter Costello’s 2007 changes made payments from superannuation tax free after age 60 for those who are fully retired. Is he responsible for making super unaffordable which is now forcing policy changes?
Despite rapid increases in life expectancy at the time of receipt, eligibility for the age pension has remained at 65 for 100 years. It creates a sense of entitlement and discourages people saving for retirement.
Regardless of age, there’s always something that can improve your preparation for retirement, especially given doubts about the sustainability of Australia’s tax and welfare systems.
Depending on your own situation, 60 might be the new 50 or the new 70. When it comes to making decisions about retirement, aged-based rules might not be as useful as once thought.
The recent and proposed changes to the pension system have caused quite a stir. Instead of fuelling the panic, it could be a great opportunity for you to reassess retirement plans, focus on your super and make the most of it.
Any change to the pension eligibility age should consider the differing situations that influence an individual’s working life, health and mortality. If a labourer can’t work beyond 60 it’ll be a long wait to access a pension.
Models, statistics, historical data and forecasts can paint a picture of the average investor, but just who is average? Financial planning and investment decisions need to consider the individual.
In 1909, there were 15 workers for every retiree, but by 2025 it will be down to only 3.5 workers. But we’re still defining ‘retiree’ as over 65. Using dynamic retirement age principles gives a brighter perspective on old age dependency.