Should we be raising the pension age to 70? The Productivity Commission has called to raise the Age Pension cut off to 70.
It is a hot debate – Should our more mature citizens have to keep working with the Productivity Commission suggesting raising of the pension age to 70 from 65 years of age? The government has quickly dismissed the idea but what is the rest of Australia thinking when it comes to raising the pension age to 70?
With out getting bogged down in the a political, economic details, there seems to be two sides dominating sides to this argument; no way! and why not?
Let’s start with the no way!
It seems lifting the age to 70 may have several negative effects on older generations, we don’t want to see grandmothers and grandfathers join the dole queue at 66 years old. The Australian Government already only spends 0.8% of gross domestic product on aged care fairly low compared to some other first world countries including the Netherlands which spend 3.5%.
Senior Policy Advisor for the CSPA ( Combined Pensioners and Superannuation Association) belive raising the age will have adverse affects on low-income earners.
“This policy may satisfy the bottom line, but it would have devastating impact on low-income older people” Ms Crowe said.
So while the rich can still retire at whatever age they prefer, a lot of Australians will be forced to work until they are 70 just to make ends meet. But truth be told success can be measured in many ways, should the low-income bracket be punished and be forced to work longer?
Now for the Why not?
Most Australian’s have to live on a budget and the government does too. The cuts need to come from somewhere and is this the best way to go about? Not likely, that’s why the government has scrambled to dismiss the idea, plus they probably didn’t want a riots in retirement homes. Suggesting to lift the age by an arbitrary five years may not be the answer but raising the age based on average life expectancy in Australia could be something to consider. People are living longer especially in privileged countries like Australia.
What are your thoughts on raising the Age Pension age to 70? Do you think no way, like the government or do you want to consider the option?