The Coalition will raise the pension age to 70 in next month’s budget and workers could be affected as early as 2029.
According to a report by The Australian, the “live option” being reviewed by the Abbott government will increase the entitlement age for the pension by 3 years in the hope to accelerate Labor’s plans to raise the pension age from 65 to 67 as of 2017.
While a decision has not yet been made, the government is also planning to increase the retirement age to 70 using Labor’s formula of a six-month rise every two years, meaning the new retirement age would become effective as of 2034.
The government believes the changes will make the aged-pension system sustainable, and that pensions will no longer be a source for budget cuts.
Joe Hockey’s comments last week foreshadowed the news, when he said the government has to keep up with the ageing population.
“Quite frankly, we need to redesign our systems to manage the fact, and celebrate the fact that we’re all living longer and we want to maintain a good quality of life along the way.”
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