Lifting the Pension Age Will Hurt Our Economy


The Northern Rivers Social Development Council is warning lifting the pension age to 70 could have a serious economic impact within the region.

A lift to the pension age is reportedly under active consideration by the Federal Government, as a means of getting the budget back into surplus.

Medicare benefits and superannuation have also been identified as potential areas that might be targeted for budget cuts.

CEO of the Northern Rivers Social Development Council, Tony Davies, warns there is an above-average number of pensioners within this region.

He said raising the age of eligibility to 70 would leave many struggling.

“If you are lifting the pension age, one effect of that is that people in their late sixties – people who would really struggle to find work in the current job market – will have to survive on $36 per day,” he said.

“They will be living in poverty, and they wont be able to actually contribute to the economy through their spending power.”

Mr Davies said there are plenty of other areas to find savings.

“Currently it costs the Government $40 billion a year to pay aged pensions,” he said.

“At the same time, the Government gives 40 billion dollars a year – the same amount – in tax concessions to people with superannuation.

“Roughly a third of that, $13 billion, of those tax concessions go to people in the top 10 percent of income earners.”

Source: ABC News

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