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The SMSF Professionals' Association of Australia (SPAA) has called for a measured debate on increasing the pension age, amid growing speculation the Abbott Government will raise the age to 70.
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SPAA calls for debate on pension age
23 April 2014
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7 minute read
SPAA's director of technical and professional standards, Graeme Colley, said any decision to change the pension age must consider the impact on other social security benefits and the age at which superannuation can be accessed.
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“People will be forced to seek other types of benefit and if current rules continue with an increased pension age any amounts accumulating in superannuation are excluded for the assets test,” he said.
Mr Colley said that sustainability of the superannuation system is not the issue but whether adequacy is able to be attained within the current settings.
"So that sustainability and self-provision of retirement benefits can be achieved, SPAA believes stronger links should be made to integrate the age pension system and the retirement income system,” he said.
An increase in the pension age will likely mean those in labour-intensive jobs whose physical condition is likely to fall behind those in less physical jobs may need to access Newstart, or some other type of social security benefit to survive. What is saved in the cost of the age pension may result in an increase in other government social security expenditure, according to Mr Colley.
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