Mercer Human Resources Consulting is urging the Federal Government to raise the pension age from 65 to 67 and to reduce the taxation rate paid by superannuation funds as part of a wider push to address the ageing of Australia’s population.
The recommendation represents a part of Mercer Human Resources Consulting’s response to the Australian Productivity Commission’s draft report on the economic implications of an ageing Australia, with the company’s head of public sector superannuation, David Knox suggesting such policies would encourage older workers to remain in the workforce.
He said that in terms of retirement, Mercer believed that the whole concept of a single retirement age was not outdated and that there would be significant benefits in raising the pension age from 65 to 67 over a long transition period.
“The role of superannuation will be critical in the years ahead as baby boomers will be required to make greater contributions to receive the range of services desired in retirement,” Knox said.
He said that in these circumstances there would need to be a clear-cut long-term savings incentives and that this was why Mercer strongly advocated reducing the taxation rate paid by superannuation funds.
Knox pointed to a recent Mercer survey which showed that an ageing labour force would have a large or moderate impact on 80 per cent of Australian employers including the need to adjust recruitment practices and employment conditions, the need for more flexible reward structures and the need to respond to skill shortages in some areas.
