Changing age of retirement

By IAN HENSCHKE

FOR decades, men could look forward to retiring at 65 and getting the pension. For women, it was 60. Their eligibility was increased over 10 years between 1995 and 2004 until they too reached the same qualifying age.

In 2009 the Rudd Government lifted it to 67 for men and women but it was to be phased in from 2015, with six month increases every two years, starting from July 1, 2017. Now we’ve arrived, after almost 30 years, at a pension age of 67 from July 1! But it could have been worse.

Almost 10 years ago Treasurer, Joe Hockey, announced it would go to 70 by 2035. He asserted it was “highly probable a child born today would live to 150.” Really? His move followed on from a report from the Commission of Audit, which recommended the qualifying age be linked to life expectancy. The thinking was because we are living longer than our parents and grandparents, we should remain in the workforce longer.

There was a huge backlash including a campaign led by National Seniors. A popular slogan at the time was: “Only someone who’s worked in an office their whole life would think you can work until you’re 70!”

In the run up to the 2019 election Scott Morrison dropped the age-70 target as Liberal policy. His deputy, Michael McCormack said it was “probably a step too far” adding “I think if you’re a tradie, or a brickie, or a shearer in rural and regional Australia you don’t want some suit in Canberra telling you you’re going to have to work until you’re 70.”

At National Seniors, we were pleased the government “backed away from the unpopular idea” and called the decision “a

LETTER TO THE EDITOR Look at alternatives

Sir, It is so much more than “opposing the project which they say will run through their properties” when it comes to the VNI West project. It is about democracy!

Generally, ‘community consultation’ has been a sham – ticking the box for AEMO, not the community, $10 paid to complete an Ipad survey is coercion. There has been no transparency for questions still remain unanswered. Compulsory acquisition, of what a sickening ring those two words make!

Just for a moment imagine 28,000km of transmission lines running from southern Victoria to northern Queensland. Imagine the materials needed. Are they going to be imported from our exports? Are they coming from a country which is the

Perspective

win for common sense”. Now a group of academics has revisited the statistics and released a report saying a further rise is warranted to ensure the country has a sufficient supply of workers into the future.

Macquarie University Business School

Professor Hanlin Shang and his co-authors say there should be three more pensionage increases over the next 27 years. They suggest 68 by 2030, rising to 69 in 2036, and 70 by 2050.

Professor Shang says Australia’s low birth rate is one of the key factors.

“Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher,” he said.

“What this means is there is less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system.”

Professor Shang and his team should read, or hopefully re read, “The Age Pension in the 21st Century” by 2018 Actuary of the Year Michael Rice. He revealed the cost of the age pension as a per centage of GDP will fall, not rise in the decades to come. There will be far fewer full pensioners, and far more part pensioners and selffunded retirees.

The “burden” simply won’t be there. The pension was 2.9 per cent of GDP when Peter Costello’s 2002 Intergenerational Report predicted it would grow to 4.6 per cent of GDP by 2042. But it was it was just 2.7 per cent of GDP five years ago, and Rice Warner projected “expenditure to fall to 2.5 per cent of GDP by 2038.” It added “the downward trend will continue well into the future.” biggest annual emitter of planet warming greenhouse gases? How clean and green is that? Is Australia simply becoming a milk bar? Do we simply buy in and sell on to our citizens?

During COVID we felt and experienced the need as a nation to become self-sufficient and therefore, the need for more manufacturing in Australia.

As COVID subsides, sadly it seems, so does the need for self-sufficiency. Like me, these transmission poles and wires have a life span – they say 60 years. What happens then?

The question was raised at Charlton’s TCV community meeting last Wednesday evening and the answer was probably scrap metal!

This is all in the name of transitioning to clean energy. Almost forgot the 17 truck

It’s predicted to be just 2.1 per cent of GDP by 2060. Why? Superannuation has been delivering, just as Paul Keating predicted. His “magic of compound interest” has been adding to the retirement incomes of millions.

We reject calls for raising the age to 70 on both fiscal and social policy grounds. Many people exit the workforce because of ill health.

We should consider a Canadian style system where you can opt to get the pension earlier but get a bit less.

We’ve also argued the best way to tackle declining participation is to provide incentives to those who choose to work longer.

Our Let Pensioners Work campaign calls for a reduction in the income test taper rates so you can keep more of your pension if you choose to continue working. This is fairer than raising the pension age because it rewards people who want and need to work.

Pensioners who chose to work would benefit from extra income and their participation would also help the economy.

If you are on a pension, and you want to keep working it’ll be a win for the economy, it’ll be a win for the pensioners, and it will be a win for the government.

A note to politicians, our latest poll of more than two thousand people showed just seven per cent support the move to 70, 45 per cent are fine with 67 and 46 per cent want it back to 65.

An election winning policy would be to lower it back to 65 as they’ve just done in Canada.

* Ian Henschke Chief Advocate National SeniorsAustralia loads of concrete for one transmission pole

There are solid alternatives being put forward for a better way which present day infrastructure can facilitate, a cheaper way, a way with far less environmental impact and thus a lesser impact on human well being. Our Government needs to ask questions and listen to their people. alternatives must be investigated, there has to be a better way forward than what is proposed.

If the Government isn’t willing to look at these alternatives, then there must be a Senate Inquiry to do so. It is so much more than power lines going through property, it is about sustainability, environmental impact. It is about democracy!

GlendaWatts Charlton

1. Marie Curie was the first woman to win what famed award?

2. Pearls are found in which aquatic creature?

3. What is the real name of Robin (Batman’s sidekick)?

4. In ballet, what term is used for when you bend at the knees?

5. What animal forms part of the logo for car manufacturer Lamborghini?

6. Which Williams sister has won more grand slam tennis titles?

7. What is the name of the hottest chilli in the world?

8. And what unit of measurement is used to measure the chilli heat of food?

9. The four strings of a violin are tuned to what notes?

10. The femur is found in which part of the human body?

11. What is the smallest country in the world?

12. Queen Cleopatra of Egypt was not Egyptian, what was her ethnicity?

13. What is the main ingredient of hummus?

14. The Australian Grand Prix has been held at which venue since 1996?

15. American President John F. Kennedy was assassinated in which city in 1963?

16. In Norse mythology, Thor was the son of which God?

17. Arthur Conan Doyle is the creator of which famous detective?

18. And from whose perspective are those books written?

19. Levi’s is a well-known brand of which item of clothing?

20. What was the most popular dog breed in Australia in 2022?

Answers

YOUR VOICE IN PARLIAMENT

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The coronavirus pandemic has had a profound impact on all our lives so looking after your mental wellbeing is essential. It is normal to feel anxious, stressed and fearful during times of crisis. The Federal Government is providing support for the mental health and wellbeing of Australians as we face the challenges of the pandemic; go to www.headtohealth.gov.au if you feel like you might need some additional help coping with anxiety and worry about Coronavirus.

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If you need advice or assistance with anything related to government, or in your general day-to-day life, please contact my of ce on the details below and we will do our best to help you.

The coronavirus pandemic has had a profound impact on all our lives so looking after your mental wellbeing is essential. It is normal to feel anxious, stressed and fearful during times of crisis. The Federal Government is providing support for the mental health and wellbeing of Australians as we face the challenges of the pandemic; go to www.headtohealth.gov.au if you feel like you might need some additional help coping with anxiety and worry about Coronavirus.

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