The SMSF Association has joined the choir of industry voices welcoming the Government’s backdown on raising the Age Pension to 70, pointing out that reliance on the Pension was dropping anyway as superannuation started to kick in.
SMSF Association chief executive, John Maroney, said there were two reasons raising the retirement age would have been problematic.
“First, there are many workers involved in physically intensive work, as well as those sustaining work-related injuries or are unable to work due to illness, for whom a higher retirement age is simply not feasible. Determining who is eligible and who isn’t would be a difficult decision for government,” Maroney said.
“Second, Australian Bureau of Statistics figures show that many people post the Global Financial Crisis are choosing to stay longer in the workforce because they have a more realistic assessment of their long-term financial needs and enjoy the social connectivity associated with work.
“They might only be working part-time or on a consultancy basis, but they remain active participants in the workforce.”
