Paul Keating proposes a ‘longevity levy’ to help pay for the needs of seniors aged 80 to 100

WOULD you be prepared to pay more to help finance the retirement plans of octogenarians? That’s what former PM Paul Keating is suggesting Aussies do.

Calling for more tax ... Prime Minister Paul Keating wants a longevity levy introduced.

WOULD you be prepared to pay more to help finance the retirement plans of octogenarians?

That’s what former Prime Minister Paul Keating is suggesting Australians do.

The architect of the superannuation scheme wants to see a longevity levy introduced, to help those aged 80 to 100 as the population lives longer.

A Commonwealth insurance scheme would be able to fund income support, aged care and accommodation, he said, so people don’t have to just rely on the pension.

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Mr Keating argues under the current scheme, superannuation lump sums have “well and truly” expired by the time people turn 80.

“We can’t try and pretend that like a piece of Indian rubber, we can stretch the accumulation from 65 to 95,” Mr Keating told ABC TV last night.

“There’s not enough of it now and it can’t go for 30 years.”

A matter of life or death ... one person dies earlier, but their work and savings subsidise other people who last into their late 90s, says former PM Paul Keating.

According to the former prime minister, funds from a levy of 2 to 3 per cent of wages could be pooled together.

“It’s a classic insurance thing,” he said.

“It’s like the houses in the street: you pay your insurance, but only one house burns down. What happens? One person dies earlier, but their work and savings subsidise other people who last into their late 90s.”

When asked whether this would be just another tax, Mr Keating had this message for voters: “They all know they’re heading for the old stove roundup: 80 to 100. Right? They’re heading there. And you see, this — we’ve got to think about now.”

What do you think? Are you prepared to pay a longevity levy? Tell us below.

Originally published as Paul Keating proposes a ‘longevity levy’ to help pay for the needs of seniors aged 80 to 100