Rethink needed on pension age

Posted by Michael on May 25, 2009, 9:56pm, 226 views

Union rallyIt’s good that unions have rediscovered their voice and realised they have more than a symbolic role in representing organised labor.

After winning the war on WorkChoices it seemed the ACTU had gone to ground, or possibly to bed with the Rudd Government.

If a conservative government had proposed raising the pension age to 67 there would have been riots.

Finally the left wing has awoken from its slumber and spoken out through the Construction Forestry Mining and Energy Union and the Australian Manufacturing Workers Union.

The unions say they can’t comprehend how a Labor government would demand that people who had spent decades in arduous manual labour extend their working lives.

While some people want to work past 65 and many are physically capable, it is not the case for everyone.

What we are likely to see in 2023 and beyond is more people going onto disability pensions or unemployment benefits when they reach 60 because the lure of an age pension at 67 is just too far away.

Indeed, after Norway lifted its pension age there was a spike in disability payments, raising the issue of whether the change was cost-effective.

Treasury bean counters have probably taken that into account and figure the country will still be ahead financially.

However, I’m concerned about the wellbeing and self esteem of men (possibly including me) and women who can’t work for whatever reason.

Those who have worked in hard physical jobs may simply be unable to continue when they reach 65.

The system may or may not take care of the unemployed elderly, but I don’t think it will be very edifying to hold out your hand for interim assistance after 45 years of paying taxes.

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