Forcing Australians to work until they are 70 will save the government $3.6 BILLION – but politicians will still get their pensions at age 60
- The Government are continuing measures to increase the pension age to 70
- Six month increases will begin on July 1, and the age will hit 70 by 2029
- Social Services Minister Christian Porter says it’ll make the pension ‘sustainable’
- There has been no announced increase for politicians, who can retire at 60
Under measures announced in the 2017 Federal Budget, the pension age is set to rise to 70 by 2029.
The age will move up in six month increments from 2025, and is expected to save the Government $3.6billion.
This measure was first announced in the 2014 Budget under Tony Abbott, and was confirmed to be ongoing in May’s Budget, the Daily Telegraph reported.
But while Australians will have to keep their working boots on for longer, politicians are still eligible to pick up their pensions from the age of 60.
Increases to the Age Pension eligibility age begin on July 1 2017, where those born on or after July 1 1952 will need to be aged 65 years and six months to be eligible.
It will increase by six months every two years until July 2023 when the retirement age will be 67, according to the Department of Social Services general manager Hank Jorjen.
From there, it is expected to climb every six months from 2025 to 2029, until it reaches 70.
Social Services Minister Christian Porter said the changes are necessary to protect the ‘sustainability’ of the pension system.
‘It remains government policy to increase the age pension age to 70,’ he told the Telegraph.
‘This is a sensible move to ensure that our pension system is sustainable for future generations.’
If the measure goes ahead, it will give Australia the highest pension age in the developed world, reported The Conversation in February.
NOTE: While the Fed. Labor Opposition questioned the move, they have NOT promised to repeal these changes whatsoever.
Also, if you are unemployed from age 60, you will be able to access your personal super/pension savings, until age 70.
Original article here