Henry Review Pension Age Debate Unpopular But Necessary, Say Seniors - Australia

Main Category: Seniors / Aging
Article Date: 10 Dec 2008 - 8:00 PDT

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Despite floating controversial ideas such as raising the Age Pension age, older Australians have welcomed the debate unfolding around the sustainability of the retirement income system.

In a community consultation paper released today, the Future Tax System or Henry Review reveals raising the Age Pension age (65) is just one of the suggestions received in the first round of public submissions. Another is the proposal to increase the age at which superannuation can be accessed.

National Seniors Australia chief executive, Michael O'Neill, said that while the suggestions will be unpopular, it's a debate the country has to have.

"We welcome the debate because, above all, it will highlight the barriers the over-50s face in the labour force".

"When it comes to superannuation, workers compensation and even recruitment practices older Australians are treated differently".

"Hit a certain age in some states and you're not covered by workers compensation".

"Reach 70 and your employer is no longer required to pay superannuation on your behalf".

"And, mark my words, when jobs start to go in the economic downturn, the over-50s will be the first to be made redundant and the last to be rehired."

"Before government can even consider raising the Age Pension age these issues must be addressed," said O'Neill.

With populations rapidly ageing across the developed world, including Australia, the OECD has pushed to raise pension ages for the past decade.

The argument goes that, as the population ages, the demands on the public purse will become increasingly unsustainable unless people work beyond traditional retirement age.

Closing date for the Tax Review's next round of retirement income submissions is 27 February.

With around 280,000 members, National Seniors is the consumer lobby for Australians aged 50 and over. It is the fourth largest organisation of its type in the world.

Sarah Saunders
Public Affairs
National Seniors Australia
http://www.nationalseniors.com.au

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