As people are living longer, vacation time should also gradually increase, which is a global trend. Recently, Australia’s Macquarie University Business School released a new research report suggesting that Australia’s leave period be increased to 70 years old to maintain the sustainability of the pension system. However, the newspaper also pointed out that this should be an incremental process spanning decades and that raising the pension age to 70 should not be considered before 2050.
The report comes as the country plans to raise the exit leave from 62 to 64, as people prepare for more nationwide protests next week. In fact, the increase in retirement years has aroused extensive debate and discussion around the world. However, research by Macquarie University suggests a slower pace of improvement would allow current regulation to be maintained without additional federal government investment. This is also a more sensible approach.
Longevity comes with risks as people live longer, leading to higher pensions from the government. Government figures show there are 3,700 older people in Australia in 2021 and are expected to reach 50,000 by 2050. Therefore, it is necessary to increase the retirement age, but this should be a gradual reform process. People live in the present, and if changes are gradually realized in the future, we can all accept them.
By 2030, the average life expectancy for all Australians will exceed 85 years, with older people living more active lifestyles. Many people in their 80s have done reset and replacement techniques in order to live longer. In a knowledge economy, people can work longer and retire later. People’s skills grow with age, and their value in the labor market increases as they age. So, under the right circumstances, deferring retirement can be a good option.
The abolition of the mandatory superannuation system has also helped Australians enjoy a healthy old life. This system does provide some level of security for older people, although the majority of Australians who reach retirement years remain on full or partial superannuation. Australia already has one of the highest pensioner years among OECD members, on a par with Iceland and Anger.
Finally, it should be pointed out that although it is necessary to propose a high school graduation holiday, it should be a gradual reform process. The government needs to take into account the interests of the elderly and society as a whole, and adopt a step-up approach to achieve this goal.
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