Australia should emulate France in introducing a "floating retirement age", according to the Combined Superannuants and Pensioners Association (CSPA).
Such a regime would then not disadvantage people who, due to hard physical labour, were unable to continue working past 60.
"CPSA calls for a floating pension age to allow some people (such as those who completed manual labour jobs throughout their working lives) to obtain the age pension at an earlier age," said senior policy adviser Amelia Christie.
"This model has been successfully implemented in France and recognises that people's working lives have an impact on their health and well-being, as well as their employability later in life."
Last year, the French Government reduced the retirement age for workers who had contributed to their retirement savings for 41.5 years – a small subset of people – from 62 to 60.
The French Social Affairs Minister at the time, Marisol Touraine, said approximately 110,000 people would benefit this year, while the measure would cost 1.1 billion euros.
However, one year on, the Government is looking into further pension reforms in order to satisfy its European Union obligations to reduce spending.
Grattan Institute chief executive John Daley advised an Association of Superannuation Funds of Australia (ASFA) luncheon last month that the Government had only limited policy levers to promote economic growth – but increasing the age pension age and restricting access to super were options.
Last year, National Seniors disputed the Grattan Institute's call to increase the pension age to 70, saying it was a distraction from the real issue of increasing the workforce participation rate of older Australians.
Originally published by SMSF Essentials.
