Prime Minister Scott Morrison yesterday announced that the Government won’t proceed with its policy to raise the Age Pension access age to 70, in a move welcomed by key industry bodies as, according to the Australian Institute of Superannuation Trustees (AIST), “a big win for older Australians”.
"We welcome the Coalition’s recognition that raising the Age Pension access age to 70 is flawed policy that is out of step with the reality for many older and potentially vulnerable Australians," AIST chief executive, Eva Scheerlinck, said.
Scheerlinck said that many Australians did not get to choose when they retired and increasing the Pension access age would unfairly impact them.
“Ill-health, age discrimination, job type and caring demands all have a significant impact on when a person retires from paid work,” she said. “Raising the access age for the Age Pension to 70 would have been unfair and discriminatory to many older Australians who simply do not have the opportunity to continue in paid work.”
Industry Super Australia (ISA) similarly welcomed the policy backdown, with deputy chief executive, Matt Linden, saying that “Australians do not want to work until they drop”.
“Forcing manual workers, in particular, to stay at it until 70 would have been unreasonable.”
Linden said that he hoped the announcement could signal a willingness within government to also reconsider the extent of the 2107 pension asset test changes.
The $300 billion fund has announced the development of a new flexible lifetime income option in partnership with TAL.
As regulators spur funds to focus on Australia’s ageing population and overseas players voice their interests, professionals expect a boost in innovative activity in super.
Over half of Australians hope to live to 100 years, according to MetLife, and 90 per cent believe retirement should be redefined to account for a longer lifespan.
Two actuaries have urged for an overhaul of the current retirement framework to better prepare Australians for the future and improve the accessibility of general financial advice.
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