The Federal Government also announced in the budget that the retirement age will be gradually increased to 67 years
Under changes to the pension age, the age at which people qualify will increase at a rate six months every two years, beginning in 2017 and reaching 67 years in 2023. The Government said the changes to the pension age are needed to support the long-term sustainability of the system and reflect improvements in life expectancy. The massive shake-up of pensions is in response to the federal government’s Harmer pension review which it received in February.
“These are the most significant reforms to the pension since it was introduced 100 years ago,” Families Minister Jenny Macklin said in a statement.