Recent announcements to lift the pension age to 70 years by 2035 have been met with criticism especially from manual workers in the country. The qualifying age for age pension will rise to 67 by 2023 in support for the long term sustainability of the labour force, according to Federal Treasurer Joe Hockey.
The Australian 11.5 million workforce is composed of 10% labourers and 15% trade workers who considers the extended working life a challenge. But the bigger issue with this policy change is that nearly 9 million workers are most likely going to outlive the standard life expectancy and will receive their pension for almost 40 years. With this move, another issue has yet to surface. During the last financial year, a total $146 million was approved for early release of superannuation. The government’s move to increase the pension age is expected to drive early super access.
Read more about this on the Financial Standard website.