WORK­OUT Trend to higher pen­sion ages

The Weekend Australian - Travel - - Career One -

GOV­ERN­MENTS around the world are rais­ing the of­fi­cial ‘‘ re­tire­ment age’’ in line with in­creas­ing life ex­pectancy. In Aus­tralia by 2014 it will be 65 for both women and men (up from 60 for women and 65 for men).

Rais­ing the age at which peo­ple be­come el­i­gi­ble for an aged pen­sion re­duces so­cial se­cu­rity costs for gov­ern­ments. The US has pegged the re­tire­ment age at the high­est level, at 67-70 (de­pend­ing on the year of birth). Some Euro­pean na­tions — Den­mark, Ger­many and the UK— are mov­ing to­wards a higher than 65 re­tire­ment age.

A Mercer re­port, analysing data about changes in 47 coun­tries, high­lights a grad­ual in­crease in re­tire­ment ages. Mercer World­wide part­ner David Knox be­lieves Aus­tralia has a good case to in­crease it from 65 to 67.

‘‘ It’s now time to tackle the ‘ age 65’, but only with suf­fi­cient tran­si­tion time and a con­tin­ued safety net,’’ says Tim Jenk­ins, Mercer’s Asia Pa­cific Re­tire­ment Leader.

‘‘ The latest global re­port that out­lines a global trend to­wards in­creas­ing re­tire­ment ages pro­vides the per­fect plat­form to raise the ques­tion of ‘ why 65’. The pen­sion age has not been changed in 100 years in Aus­tralia, yet our life ex­pectancy is con­stantly in­creas­ing — why aren’t we dis­cussing the va­lid­ity of 65?’’

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.