In recent months there has been significant public debate surrounding the rising retirement age in Australia. With the government indicating it would like to increase the retirement age to age 70 in 2035.

The plan to raise the retirement age to 70 is getting a lot of attention from around the globe as Australia looks to be the first nation to attempt to do so (but not the last). The retirement age is being reviewed due to the aging population. It is forecast by 2050 the number of working age to retired aged Australians will fall from 5:1 (2010) to 3:1. Bloomberg reports that the government Age Pension is the main source of income for 65% of retired Australians. Hence the Australian Government is being hit by a double whammy, falling tax base and rising pension burden.

Raising Retirement Age
The rise of the retirement age highlights the importance for self funded retirees to ensure their superannuation is working for them.

With superannuation being the main tool for wealth creation prior to and during retirement you need to ensure you are maximising the benefits offered.

If you would like to discuss any aspect of your superannuation please contact Tim Ward on 07 3833 3999 or email tim@fwo.net.au