Retirement age should reach 70 by 2050 Macquarie University Business school research suggests
Australians have reacted furiously to suggestions they will have to stay in the workforce until 70 years of age before retiring. New modelling done by Macquarie Universitys Business school proposes that by 2050 Australians will need to continue working until they reach 70. The model takes into account Australia's ageing population and low birth rate, meaning more people will reach pension age but with less people of working age to support state-paid pensions. Younger Australians who are already having to battle a crisis were furious at the suggestion. Those working in physically demanding occupations were particularly vocal on social media, claiming their bodies would wear down well before they reach 70. 'Try and be a Tradie at 70,' one user wrote. 'I'm turning 40 this year, if I can work until 70 it'll be a miracle,' a second user wrote. 'I work in a laborious job and have many injuries and one major injury in the last two years. My body is already telling me it wants me to stop and find a easier job.' 'I work 12hrs a day, have been underground for 15 years,' a third user wrote. 'I love my job, most likely will not need the pension, but despise a requirement to work longer and longer.' Others users urged younger generations to contribute to their superannuation as much as possible to comfortably leave the workforce at an earlier age. 'Consider optimising your superannuation contributions when you can, if possible start as soon as you get your first pay,' one user wrote. 'Ive been telling my kids for years to put (money) away as there wont be a pension as we know it. Luckily my advice is sort of being listened to,' another wrote. Currently, Australians are able to access a pension wage at 65 years and 6 months as long as they were born between July 1, 1952 and December 31, 1953. Those born after that date will be able to access their pension from the age of 66. From July 1, anyone born after January 1, 1957 will have to work even longer with the pension age increasing yet again to 67-years-old. Macquarie University Professor of statistics, Hanlin Shang, claims their research suggests the pension age will have to continually increase. 'Less people in the working group and more in retirement will make the old age dependency ratio (OADR) higher,' Professor Shang told The Lighthouse, the university's publication. 'What this means is there are less working people to support elderly people. And with more elderly people in the population, this will create a burden for the government pension system.'