Were you born on or after 1 July 1958? If so, the Federal Government's proposed changes to the pension age will affect you.
Whilst the focus on this proposed change in the recent Federal Budget has been on the pension age rising to 70 for everyone born on or after 1 January 1966, little has been said about a significant number of Australians who will also be forced to work past 67.
The incremental increases in the pension age start acting on anyone born on or after 1 July 1958, therefore the impact of the proposed changes begins in 2025. That's not far away.
Not only do these changes pay scant attention to people's ability to safely work beyond the age of 67, the Federal Government has ignored what this may do to the retirement plans of large numbers of people.
Australians performing manual labour or jobs that require extended periods of physical activity, lifting, etc, are not well-suited to extended working lives. Many take early retirement as a result of the stress and strain of the work they have performed, many from their teenage years.
Others who have made detailed retirement plans based on current standards, some of whom may have been retiring in the next 10 years, will now need to revisit their plans. Will their finances still stack up with an ever receding pension age?
More details about the proposed changes can be found in this fact sheet from the Federal Department of Social Services.
If you are concerned about these changes and how they may affect the security of your future physical or financial health, contact your Federal Member of Parliament – you can find all their details here.
Age discrimination
To add to physical and financial considerations for workers being made to work longer, the issue of age discrimination will likely worsen as the pension age recedes further into the future. Read today's article by Shane Green in The Age "Call for change of attitude on employing older workers".