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Forcing Australians to work into their 60s could be detrimental to their sense of autonomy, health and wellbeing, a study has found.
Removing people’s autonomy over when to retire and forcing them to work until age 67 to qualify for a government pension could harm their health and well-being.
With the ongoing debate over who should pay the burden of aged care in Australia, a study has found that people most likely to experience the full benefits of retirement have been able to make the decision to stop working sooner.
But only 30 per cent of Australians can afford to retire before becoming eligible for a pension, according to Dr Rong Zhu, senior lecturer in economics at Flinders University’s School of Business, Government and Law.
Forcing Australians to work until age 60 could be detrimental to their sense of autonomy, health and wellbeing, study finds
“We need to consider the unintended consequences of delayed retirement for health and wellbeing through a reduced sense of internal locus of control,” he told AAP.
“If workers work beyond retirement age, they are less likely to view the outcomes of their lives as a result of their own choices and actions.”
This can affect all the benefits that workers could expect at that stage of life.
“Our paper shows that retirement significantly improves older people’s physical and mental health, as well as their subjective well-being as measured by life satisfaction,” Dr. Zhu said.
«One third of the positive impact of retirement on health and one fifth on well-being can be explained by the increase in the internal locus of control driven by retirement.
Only 30 per cent of Australians can afford to retire before becoming eligible for a pension, according to Dr Rong Zhu, senior lecturer in economics at Flinders University.
“In the face of a longer eligibility age for the old-age pension, if an older person postpones retirement, the health and well-being benefits associated with retirement will also come later.”
Raising the retirement age to 67 for men and women may be difficult, when they could have enjoyed the benefits of retirement much earlier, he added.
Australia’s public pension take-up rate is the second highest of all OECD countries, with around 70 per cent of retirees receiving a partial or full payment.
But a recent review of the aged care system found that over the next 40 years the proportion of people accessing the pension will fall by about 15 per cent, and the overall wealth of older Australians will increase thanks to rising income. retirement and assets.
The government-commissioned Aged Care Task Force has recommended that wealthier baby boomers contribute more to aged care to ease pressure on the federal budget and allow more support for those with limited means. to access residential and home services.
The government funds about 75 percent of residential senior care costs and 95 percent of home care costs.
The government funds about 75 percent of residential senior care and 95 percent of home care costs.
Reforms are needed to make the system more sustainable, according to Mike Baird, a member of the task force and former premier of New South Wales.
“There are limitations and demands in all areas of the budget,” he said.
“Asking those who have the means to contribute more is a logical step and having a safety net for those who don’t have the means also provides some protection, so it’s a good balance.”