FSC chief executive John Brogden said while the FSC supports an increase in the preservation age to 65 years, it must be flexible for “those who can’t continue working due to ill health or who are in physically demanding jobs”.
Mr Brogden said raising the preservation age to at least 65 will increase private savings, improve living standards in retirement, boost government tax receipts and reduce age pension payments.
“While the increase in the age pension access to 70 is an important and necessary step, Australia cannot sustain a 10-year gap between when superannuation and the age pension can be accessed,” said Mr Brogden.
“There is no point in increasing the age pension age if people will simply exhaust their superannuation savings before qualifying for the age pension.”
Mr Brogden argued Australia will need a “revolution in culture, policy and attitudes” similar to that which saw the participation of women in the workforce rise from 45 per cent to 59 per cent, if an age pension of 70 is to work.
