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67 too young to retire?

Treasurer Josh Frydenberg wants to see older Australians delay retirement and remain in the workforce for longer. 

retirement

TP Human Capital : COMMENTS

While you are reading the media article below, here are some current facts to take into consideration:

  • 60yrs current Preservation age - age you can access your Superannuation fund (up from 55yrs of age)
  • 67yrs Pension age as of 2023 - up from 65yrs
  • 60yrs age - Mandatory Qld Police retirement age
  • Participation rate of over 65yrs in workforce has more than doubled in 20 years from 6% to 14% currently
  • Life expectancy has increased 2.7 years in the last 20 years - 80.4 males, 84.6 females.
  • A girl born in 1993 has a one-in-four chance of reaching 90 years of age. For a boy the probability is one-in-ten
  • The social effects of improved life expectancy at older ages include an increase in the aged population and the associated issues of income support for the aged and their need for health resources.
  • Australia’s population is ageing, raising concerns that there will not be enough taxpayers in the decades ahead to maintain the services needed by an increasingly older society.
  • https://www.aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/life-expectancy
  • The labour force participation rates is the number of persons who are employed and unemployed but looking for a job divided by the total working-age population

Frydenberg is set to deliver a speech to the Committee for Economic Development of Australia on Tuesday and will use the opportunity to call for increased workforce participation from those nearing retirement, reports the Daily Telegraph via AAP.

“As a nation, we need to effectively leverage the three P’s – population, participation and productivity – to meet this challenge,” he is expected to say. The treasurer is also expected to highlight Australia’s ageing population and increasing life expectancy, as well as the fact that the number of working-age Australians is declining.

After details emerged of Frydenberg’s speech, he has been slammed with criticism, with Australian Unions saying: “The CEOs and politicians who gutted TAFE and want to attack our super are the same people who want us working until we’re well into our 70s whether we like it or not.”

The treasurer’s speech comes after the spotlight was shone on the rising trend of ‘unretirement’ – which sees older Australians shunning the traditional retirement plan and returning to work in later life – by Channel Nine’s A Current Affair program.

According to data from the Australian Bureau of Statistics, 177,500 Australians aged 45 years and over who had previously retired had chosen to return to work, or were planning to, in 2016-17. Nearly half (42 per cent) chose to do it for financial reasons, while 32 per cent stated they were “bored and needed something to do”.

TP Human Capital Managing Director- Clayton Cook, spoke with ABC radio today on the matter.

The issue of an ageing population is not a new one, nor is it unique to Australia. Given the cost to the economy, encouraging people to stay in the workforce for longer periods has been a priority for successive governments. The Government currently has various tax policies aimed at keeping people in the workforce, and also superannuation schemes that are specific to people aged over 50. However, the Human Rights Commission has warned more needs to be done to overcome age discrimination in the workforce.

This starts the heated discussion when you look at the unemployment rate across Australia and especially within regional cities such as Townsville.

 

To read the full report from the Daily Telegraph click HERE

To read the full report from the ABC click HERE

Should we be making the retirement age higher instead of focusing these efforts on the currently unemployed?

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