Treasurer Josh Frydenberg wants over-65s to work longer to boost economy

A News Corp poll has found most Australians oppose treasurer Josh Frydenberg’s plan to retrain over-65s so they can work longer. VOTE, HAVE YOUR SAY.

Australians overwhelmingly believe over 60s shouldn’t have to retrain and work longer and the qualifying age for the pension should remain at 65 or older.

Treasurer Josh Frydenberg yesterday called for older Australians to stay employed for longer as a way of boosting the economy.

A News Corp poll of nearly 3500 people (as at 1pm AEDT today) found 74 per cent objected to over-60s being re-skilled, with the remainder 26 per cent seeing benefits in the proposition.

Asked whether the pension age should stay at 65, 70 per cent of voters said yes, 17 per cent said it should be lower and 13 per cent said it should be higher.

Frydenberg’s plan generated nearly 600 comments from News Corp readers.

“Cut the over-65 tax rate by 50 per cent might encourage some to work on past 65,” wrote Kym.

“Whatever foolish decision they make in what the age of retirement will be, including what benefits a citizen is entitled to, should include all citizens especially politicians with their added bonuses cancelled,” posted Graeme.

Workforce participation for over-65s is 14.6 per cent, up from six per cent 20 years ago.

Jennifer in her seventies, said she has no choice but to work: “I am still working at 73 as there is no other way for me to pay bills”.

Judy pointed out the hypocrisy in the plan: “It used to be that older workers were accused of taking the jobs from the young people. How times have changed!”.

But there were some that supported the argument for working longer.

“As an older Australian, 81, I worked well into my late 60s and would have done so for a lot longer health permitting, I would still like to have some meaningful work to go to today,” wrote Paul.

Mervyn said: “It should be an option. The pension age at 65 should stay for those who want to take it but if you want to keep working there should be nothing stopping you.”

In a speech yesterday evening, Mr Frydenberg said he wants higher employment rates for over-65s to help grow an economy burdened with debt.

“As a nation, we need to effectively leverage the three P’s – population, participation and productivity – to meet this challenge,” Mr Frydenberg told the Committee for Economic Development of Australia.

He reinforced the government’s determination to deliver a surplus.

“At $19 billion per annum, our interest bill is more than double what we invest in childcare and nearly as much as we spend on schools,” the treasurer said.

“Our debt burden represents not just a cost to the budget and therefore every taxpayer, but also an opportunity cost as it constrains the government’s ability to invest in other areas.

“If we don’t remain fiscally disciplined today, the next generation will have to pick up the bill tomorrow.”

Treasurer Josh Frydenberg wants Australians aged over-65s to help ease the burden on the economy by working longer. Picture: Kym Smith

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This discipline would require calm and considered decisions, not “knee-jerk reactions” to economic events or requests for government funds.

Mr Frydenberg told the dinner crowd that workforce participation for over-65s was 14.6 per cent, up from six per cent 20 years ago.

But he said 80 per cent of education happens before Australians turn 21.

“This will have to change if we want to continue to see more Australians stay engaged in work for longer,” he said.

He pointed to Australia’s higher life expectancy, a growing national median age and the shrinking number of working age Australians.

Australians aged 65 or over represent 16 per cent of the population.

Originally published as Treasurer Josh Frydenberg wants over-65s to work longer to boost economy