Never rely on the age pension

The pension age in Australia has been bumped up to age 67 previously from age 65, it was expected to be further hiked to age 70 but the new Morrison government in one of their first moves was to resist pressure - at least for the time being.

One suspects this was more a political move than a financial consideration, they are acutely aware of their voting cohort and likely poll results in 2019. For this very reason, they decided to reverse the previous decision to raise the retirement age to 70. Blue collar workers such as shearers, welders, construction workers and labourers will really struggle those final 5 years and need all the assistance available.

This is exactly the reason I believe all blue collar workers need to educate themselves on the intricacies of superannuation and retirement options. They above all should be organising their retirement plans and seeking financial advice or alternately getting involved in educational programs to learn retirement planning as an important life skill.

One should never rely on the age pension, this is purely a contingency plan for those unable to support themselves once their employment life has ended. The 9.5 superannuation levy imposed upon employers is really our money, we were forced to forego current pay rises for future retirement planning.

Really, all employees should at least match employer contributions and/or negotiate improved retirement plan participation. One can not rely on the age pension, this is especially true when Australia has an aging population that can either be remedied by increasing migration or providing greater conditions for families.

The age pension was never designed to provide a quality of life expected by many, this is a payment to protect vulnerable older people who do not possess enough assets to support themselves. It is not a right for years of paying tax through work, people who have never worked a day in their life are still eligible for the age pension once they hit the age requirements.

Pension payments for a large portion of the federal budget and governments are unlikely to be raised to levels expected. The age pension is a payment that keeps the majority of pensioners on or slightly below the poverty line, it has served its purpose and I can't see it raised to levels pensioners desire or expect.