The rise of The Retirement Age

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According to recent news reports, the Australian government is planning to raise retirement age to 70 by 2035, which means all those who are born after 1965 will need to continue to work till they turn 70 to become eligible for the pension.

This announcement was made by Treasurer Joe Hockey. At the same time, it was made clear that the position of the existing pensioners will remain unchanged.

In support of this move, the Treasurer said that such kind of decision is being taken in favour of Australia to empower it to deal with the demographic challenges that come from an ageing populace.

Further, the Commission of Audit of Australia has made a list of some government agencies and services, which are causing simply a waste of money contributed by taxpayers

How will it be done?

It has been pointed out that government should be responsible for giving only those services which private companies can’t ensure at cost-effective rates. A common belief is that government services do not involve any cost, while in truth the cost is actually recovered from the taxpayers. Hence, this makes sense to ask everyone who makes use of government services to make small contributions from their end.

upcoming retirementFurther, the Commission of Audit of Australia has made a list of some government agencies and services, which are causing simply a waste of money contributed by taxpayers. These agencies and bodies are not really playing any significant role. Owing to this, a cut back in the public service jobs is recommended along with the closure of those agencies and services. The Commission of Audit mentions that approximately 700 government agencies are operating at federal level, 93 non-principal bodies are there to give directions to 194 principal bodies, and 238 bodies are in existence to help connect the State and the Commonwealth with each other.

This initiative is said to be taken in support of those Australians who are seemingly taking financial responsibility of the pensioners by paying their taxes. And to ensure every person is responsible for his or her own finances, the role of the government is being redefined. In addition, the government is also planning to reduce parliamentarians’ entitlements, such as free plane travel, to infuse budget.

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