Pension age needs to rise

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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