Work until your seventies
Hundreds of thousands of people will be encouraged to work into their sixties and seventies due to the revamp of the retirement system.
A growing number of people are expected to give up the dream of early retirement and seachange in their fifties, experts say.
The Treasurer's Budget signalled a major shift in the way superannuation and retirement works.
Older workers will have more flexibility to remain in the workforce part-time while drawing on their superannuation benefits.
And benefits paid from a super fund and lump sum payments will be tax free for people retiring at the age of 60 or older.
That means those planning to retire earlier will still be hit by tax on their savings, leaving them much worse off. For an average income earner, retirement income will rise by $136 a week.
Experts believe the combination of measures will encourage people to work well into old age.
That will ease the burden on the Government of funding the retirements of people who have failed to save enough. It will also help fill a skills gap in the labour force.
The aim is to solve the retirement dilemma because people are working for fewer years than their parents, but living longer.
Bernard Salt, social commentator and partner at KPMG, said: "This is a natural and sensible response to
By Darren Behar,The Daily Telegraph, May 11, 2006.
