Plans to lift pension age have senior workers worried
Fears of a pension age increase, combined with findings from a recent report, have led to calls for employers to change attitudes regarding senior workers.
As ABC Online reports, the Federal Government is currently toying with the idea of reintroducing legislation that would see qualifying age for the age pension raised significantly, from the current 65 years and six months, to the age of 70, by the year 2035.
If this move were to come to fruition, it stands to reason that many Australians would be under pressure to remain in the workforce for longer. But, according to findings from a recent report compiled by the Australian Human Rights Commission, employer attitudes regarding seniors in the workforce simply aren’t keeping up with the times.
The national Willing to Work report has made a number of interesting findings on seniors in the workforce, suggesting there remains a widespread level of discrimination against older workers in Australia, despite the fact that a lot of the myths regarding the ‘deficiencies’ of seniors in the workforce are completely unfounded.
The report found that one in 10 businesses has a maximum age above which they will not recruit. And, as Humans Right Commissioner Susan Ryan suggested to the National Press Club last month, employers are missing out on huge economic benefits as a result.
Willing to Work also found that a mere seven per cent increase in the amount of mature-age labour force participation would raise the gross domestic product in 2022 by approximately $25 billion. As Ms Ryan states, “The business case for employing older workers is undeniable, yet only relatively few businesses are doing it."
Yet seniors trying to remain or re-enter the workforce still encounter discrimination.
Council on the Ageing (COTA) executive director Jenny Mobbs said, “It's a really complex issue, certainly one where the discrimination's certainly there. If a 35-year-old applies for a job, and a 60-year-old applies for the job, the 35-year-old, particularly in Canberra, will get the job.
“Younger people don't like to work with older people who've got much more experience because they feel threatened.”
Do you think enough is being done to encourage seniors to remain in the workforce? Is the Government wrong to consider increasing the pension qualification age?
Share your thoughts in the comments, we’d love to hear from you.
Related links:
Rate cuts mean life could be better on the pension
6 important money milestones to aim for in your 60s
Major changes for age pension in 2017