Posted by Judy Higgins on 26 June 2014

We’ve heard much discussion about the Government plan to raise the age of the pension from 67 to 70 years. The reason given was to reduce budget expenditure on the age pension and associated benefits. The way things currently are, this won’t work.

The economic rationale behind this recommendation for later pensions is sound. People in this country, along with others around the world, are living much longer and healthier lives. However, the argument for longer working lives relies not only on an individual’s ability, skill or aptitude, it also relies on the willingness of employers to give older workers a fair chance to compete for work on the basis of merit.

Before we ask older people to work longer, we need to ensure the impediments in the entire system surrounding employment are removed. Right now systemic barriers and negative attitudes remain firmly in place.

Currently, age discrimination prevents a great many older people staying in work, finding work, and even getting to the recruitment stage to be considered for work. Research suggests that there are currently about two million people aged over 55 in Australia who are willing to work but cannot find a job – and many sources of research data indicate the main reason is because of age discrimination. Too many employers are not willing to hire people over 50. There is little use raising the pension age to 70 unless age discrimination among employers is addressed.

At the same time, people in their 50s who are employed frequently find themselves being forced out. Additionally, workers compensation and income insurance practices and policies work against people over 65 being able to stay in paid work.

Unaddressed, this is a disaster waiting to happen – even more so if we push the pension age out a further three or more years. Individuals who are prevented from working before they even reach the pension age face huge problems. They have to use up any savings they may have, and if they don’t have savings, they are almost certainly condemned to poverty and perhaps homelessness.

People cannot work until they are 70 if the system won’t let them. Governments need to look at the barriers to employment of older workers, promote the benefits of older workers to employers and, do more work with individuals to ensure they are physically and mentally ready for employment.

The government is currently spending tens of millions of dollars on the Corporate Champions program, yet very few of the companies signed up as Corporate Champions have changed the way they recruit to ensure they include the over-45 cohort.

Unfortunately, at this stage, working until you are 70 is simply a pipe dream for the very large majority of older workers.

Source: https://www.mynrma.com.au/living-well-navigator/work-and-volunteering-blogs.htm