The Australian government increased the official retirement age to 70 by 2035. Treasurer Joe Hockey said that means Aussies born after 1965 would have to continue being employed until they become 70 to qualify for age pension.
However, he said that Australian on the pension now would not be affected by the new policy, even as the retirement age rises from the current 65 to 67 by 2023 and finally to 70 by 2035.
Justifying the hike in retirement age, Hockey said quoted by The Sydney Morning Herald, "It may be the case that my generation has to work for an extra three years ... the fact is that now, as in the United Kingdom, it's probably the case in Australia, one in every three children born today will live to 100."
Hockey will officially confirm the new policy and provide more details of the changes when he delivers on Friday a speech to the Australia-Israel Chamber of Commerce in Melbourne.
The change is part of the recommendations of the Commission on Audit to hike the qualifying age due to higher life expectancy. The commission also recommended other changes such as on income and assets tests.
The commission also recommended that young Australians in the age group 22-30 who could not fund jobs within 12 months to move to other parts of the country where there are more chances to find work.