We all know that the Budget says that the pension age will increase.
What is actually more worryingly is that looks like the Preservation Age will increase.
We naturally will take care of the issue for our clients. The other better watch out – that would be a change that affect you more than the Pension Age itself.
Appearing on the ABC’s Q&A program, Mr Hockey said he suspected the change would be in this term of government, but that we need to have a “national conversation” first about retirement savings.
The age at which super can be accessed, the preservation age, is on its way to 60, depending on birth date.
And It practically means lifting the preservation age to 65 by 2035 to mirror the increase in the pension age.
But any increase in the access age would compound the difficulties for those working in physically demanding jobs or for who wants retire before 70 independently by the Pension Age! It will even encourage more people to save outside of superannuation in trusts so that they have access to the money when they want to retire.
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