The British Government has decided to move the age pension to 70 for workers under 30 and Australia is facing the same dilemma. Treasurer Joe Hockey warns that the pension age in the country might be moved just the same; citing that pension in Australia has become unaffordable.
Mr. Hockey argued that the move is necessary as life expectancy in the country has increased to 85 years old, and proponents are finding ways to gradually increase the pension age as health and welfare increase. Under the changes, the pension age will increase by 6 months every 2 years starting July 2017. The age pension should hit 67 years in July 2023.
The age pension dilemma is a global issue, as UK is already underway with its plan to increase the pension age to 70 around 2050. New Zealand has plans to move age pension to 66 by 2036 and Canada to 67 by 2023.
Superannuation access without tax will be affected with these changes.
Read more about this on the Australian website.
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