The Australian government’s plan to make everyone work until they are 70 before they can get a pension may not be that realistic for some people.
The latest NATSEM (National Centre for Social and Economic Modelling) analysis of the workforce shows that one in five people may not be healthy enough to work up to age 70, even assuming they can find employment.
The government plans to hold off paying the aged pension until anyone born after January 1966 reaches the age of 70.
However, the latest AMP.NATSEM Income and Wealth report says that by the time the first person reaches 70 under the new rules one in four men and one in five women aged will be in fair or poor health, reducing their ability to work and save for a quality retirement.
Professor Laurie Brown, of NATSEM, says the majority of Australians leave the work force before the age of 65.
“With the possibility of this increasing to 70 over the next 20 years, younger Australians need to consider the importance of their long term health and its impact on career, wealth and retirement,” he says.
At the moment 83% of men and 92% of women older than 65 years are no longer working.