Govt must weigh up cost of age pension rise: SPAA
Discussions about raising the pension age to 70 must consider the cost impact that changes could have on other social security measures, the SMSF Professionals’ Association of Australia (SPAA) says.
Much of the debate has been shadowed by questions of superannuation sustainability, according to SPAA, when it should be focused on the flow-on effects.
The increase in the preservation age could see retirement-approaching Australians draw on other Government benefits, SPAA director, technical and professional standards Graeme Colley said.
“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 older Australians in labour-intensive jobs in particular might be reliant on programs like Newstart to supplement their income.
“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,” Colley said.
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