Pension age needs to rise

The IMF has warned governments around the world that they need to act now.

Pension age needs to rise, IMF, The International Monetary Fund, Governments, Rising Longevity, over 65s, Aged, Seniors, Australia

The International Monetary Fund (IMF) has warned governments around the world that they need to move fast to lift the pension age in line with rising longevity. With the life expectancy of 60-year-olds in Australia increasing by the rate of nine years every 50, the anticipated additional pension payments represent a major financial risk for the government.

The biggest issue facing an ageing population with an increased life expectancy is the strain on our hospitals with half the beds in public hospitals being occupied by Australians aged over 65. This age group currently accounts for eight per cent of the population.

The Australian Federal Government has already flagged a rise in the pension age after 2017 with the age expected to be lifted from 65 to 67. The Federal Government has also taken steps to increase the superannuation guarantee over the next eight years from nine per cent to 12 per cent to increase retirement savings of future generations and hopefully ease the strain on the pension system.

Read more about the IMF Global Financial Stability Report findings
Read more about how the Australian Government are lifting the Superannuation Guarantee Rate to 12 per cent
Read why Drew is concerned by the IMF's warnings



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    COMMENTS

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    justme
    12th Apr 2012
    6:25pm
    The one fact not mentioned by these theory pushers is that a big % of workers can't find work after 55 for various reasons. Increasing the pension age doesn't increase the social welfare age because these same people go on other welfare payments to get them through to age pension age.
    gustacian
    12th Apr 2012
    7:04pm
    You're absolutely right.
    Wayne
    14th Apr 2012
    9:37am
    no the pension age does not need to increase, just make the younger age people work, lower the dole, there are many mining jobs, and if the goverment go off their arses and trained the young one to work in the mines. As there are a lot of people who can't get jobs in the mines because of no experience, the government and mining companies should train these people instead of importing workers, and young people should get off their arses
    Wayne
    14th Apr 2012
    9:44am
    In Italy most young people are working, because if they don't work at least 40 years and pay tax they don't get a full pension, so if you only work 20 years you only get 50% pension, this encourages younger people to work, and the Australian government should do the same out here


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