Growing life expectancy, improving lifestyles and a practical monetary sensibility is directly contributing to more and more pensioner age crowd prevalence in Australia. Most of this 60 plus will soon leave their working nest and will then rely completely on personal savings or pensions.
The federal government of the country has come under tremendous pressure to change the pension plans and limit for these baby boomers.
At the end of their grilling work life and careers, awaits an uncertain future for this generation who then get excessively dependent on their pensions for financial support in the twilight of their lives. The next ten years will see this generation leaving the workforce and acclimatize to retired life.
Analysis by the Parliamentary Budget Office (PBO) predicts an ageing population will require an increase in government spending of $16 billion by 2029. More than $9 billion of that will be on the age pension. The PBO also suggested a new pension age. Till now the age was fixed at 66 years. as per the new plan, 67 will be the designated pension age, that will come in effect in 2023.
The soon to be retired crowd is divided on the impending decision by the federal government, but increasing the pension size is something they unanimously agree upon.
The pensions in Australia are not as high as in others countries. Most of these retiring work force don’t have great superannuation as well. So that translates to them surviving on a paltry amount and hand to mouth.
Some of them have created a large nest egg. But for the ones who barely scraping the bottom of the barrel, new rules and policies need to see the light.