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Further implications
There are a number of issues raised by the current government's intention to increase to 70 the age at which the age pension can be accessed. Central to these are questions of accuracy and equity.
It is important that the judgements being made today are based on as accurate an assessment as can be made of the demographic conditions future Australians will face and what the consequences of these will be. For example, a number of social commentators have judged that simply comparing the proportion of the population drawing aged pensions now with that who were able to do so when the aged pension was first introduced is unhelpful as it ignores the fair greater rate of workplace participation that Australia now boasts. The simple fact of current female participation in the workforce makes simplistic comparisons with the dependency ratios that existed in 1910 inappropriate.
That said, it is obvious that increased life expectancy will have implications for social policy. What is important is that policy changes made to address these issues be introduced with a long uptake period so that people are able to adjust their life plans to meet changed policy directions. There is an increasing expectation that Australians plan for their old age by making superannuation provisions that will allow them to largely support themselves. If this is going to be feasible, then those able to do so have to be given adequate advance warning to make appropriate provision for their economic security. One of the less discussed features of the pension provisions announced in the federal budget is that they have altered the allowable income available from superannuation returns before aged pension payments are affected. This change will come into affect at the end of 2014. Some critics have noted that such a short period of advanced notice is unfair to those affected.
It is also necessary that the changes that are made be equitable, that is, that they do not disadvantage particular sections of the population. Currently, there is a significant section of the population which is unable to find employment in later life, either through disability, lack of relevant skills or because of age discrimination, which makes employers reluctant to employ those 50 or older. Where such impediments to employment exist for older Australians, the requirement that they work till 70 seems discriminatory and primarily designed to have them supported by a lower level of pension (unemployment benefits) in their old age.
Whatever measures are put in place to attempt to ensure the long term viability of Australia's social security system, justice and equity have to be primary considerations.