FSC renews call for lifting super preservation age

The Financial Services Council (FSC) has renewed its call for an increase in the superannuation preservation age at the same time as releasing new research suggesting the Federal Government may not be far from the mark in seeking to increase the age for access to the age pension to 70. 

According to FSC chief executive John Brogden, the research report - How Older Workers are Valued - strongly indicates that the labour market is adjusting and starting to embrace the skills and experience of older workers. 

He said this represented a critical precursor to increasing the retirement age and boosting productivity.” 

“Two years ago, 28 per cent of employees aged between 50 and 75 said they were discriminated against on the grounds of age. This has reduced to 18 per cent,” he said.  

Brogden said the research also suggested that training and upskilling for older workers was also on the increase, with 67 per cent of older workers saying they were offered training or upskilling by their employers compared with 39 per cent in 2012.  

He said the report indicated the majority of older workers - 89 per cent - took up the training and upskilling offered by their employers.  

“We need to end the concept of full-time retirement. Australians remaining in the workforce for longer periods will stretch retirement incomes by supplementing superannuation through part-time work as well as reduce our nation’s skills shortage,” Brogden said. “The retirement savings of Australians would be increased by $200 billion for every year the Government increases the preservation age to keep people in work,” Mr Brogden said. 

“Lifting the superannuation preservation age to at least 65 would improve public finances - more retirees will be self-funded, and the number of Australians on the age pension will reduce,” he said.