subscribe to our newsletter sign up

PM scraps plans to raise pension age

Old, senior citizen, pension age, retirement

Prime Minister Scott Morrison has ditched plans to increase the pension eligibility age to 70.

He announced the decision on a Nine Network breakfast television program this morning.

“Next week, cabinet will be ratifying a decision to reverse taking the retirement age to 70. It will remain at 67, which is what Labor increased it to,” Mr Morrison told Karl Stefanovic.

“I don’t think we need that measure any longer when it comes to raising the pension age.”

The plan to raise the pension age was brought in under former treasurer Joe Jockey in his 2014 budget before being widely criticised by the Labor Party, which argued it would disproportionately impact people with physically demanding jobs.

Mr Morrison made the major policy change within two weeks of landing the top role.

As it stands, the pension age is already increasing from 65, with those turning 66 in the first six months of 2019 to wait until July for the pension.

As of July 2021, the pension age will become 66 and six months.

Mr Hockey’s proposal was to begin lifting the pension age from 2025, increasing by six months every two years. Slated to hit 70 years in 2035, the change was anticipated to save about $3.6 billion in its first four years, however the proposal was never legislated.

More to come.

PM scraps plans to raise pension age
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network