Ageing Aussies face unhealthy financial future
Poor health combined with the Federal Government's plans to increase the pension age to 70 will see one in four Australians struggle financially in retirement, research reveals.
The AMP.NATSEM report, Going the distance — working longer, living healthier, forecast that less than 50 per cent of 60 to 74-year-olds will still be working in 2035, despite the Government increasing the age they can access the Age Pension to 70.
The report predicted that poor health will reduce 25 per cent of Australian's aged 60-plus ability to work, raising concerns over their ability to save for retirement.
"In 2035, the majority of retired or unemployed Australians in their sixties will not have enough superannuation for retirement," the report said.
"If the pension age is raised to 70, many Australians will need to consider working longer to have an income and build more retirement savings.
"The ability of Australians to work longer is directly linked to health with a much higher chance those aged over 60 will work full or part-time when they assess their health status as good, very good or excellent rather than fair or poor.
"The key issue for Australia is that between 60 and 70 years of age, the proportion of people reporting fair or poor health increases.
"For those expected to be in fair or poor health, the majority of men and more than two thirds of women are likely to be unemployed.
"It is these Australians who may struggle to participate in the workforce if the pension age is increased to 70 years.
"The challenge is how the nation and employers can support future generations to remain in the workforce longer in environments that allow flexibility and the ability to transition to retirement."
AUTHOR
Nicholas O'Donoghue
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