Prime Minister John Howard’s controversial proposal to raise the minimum retirement age has met with both criticism and praise from Australian workers.

This polarised view is reflected in the response to last month’s Beilby Rewards survey. A quarter of Rewards members say they hope to retire at 60 while another 25 percent would like to finish even earlier. At the opposite end of the spectrum, 19 percent of respondents want to keep working as long as possible. A further 16 percent of members say they plan to retire at 65 with another 16 percent aiming to quit at 55.

There has been much debate around the Federal Government’s Intergenerational Report 2002-03 which assesses the financial impact of demographic change and identifies key issues resulting from Australia’s ageing population. The report indicates that the majority of Australians will be over the age of 50 years by the year 2010.

Reducing the Government’s pension obligations is a powerful incentive for social change. As the ratio of workers to retirees continues to shift, social security resources will dwindle. To compensate, the report suggests that many more people will need to work past the age of 65 - a sentiment echoed by the Prime Minister himself.

The majority of Rewards members (57 percent), however, do not agree. It is interesting to note that enjoyment and challenge is the main reason why 59 percent say they would choose to work after the minimum retirement age. A further 36 percent say they would stay on for the money and 4 percent state other reasons for working longer. Only 1 percent cite difficulty finding a successor as a reason for remaining on the job.

With the growing strain on the government’s coffers, it will be increasingly necessary for retirees to look for alternative sources of income. Asked how they plan to support themselves in retirement, 19 percent of Rewards members will be relying on a government pension and 17 percent on private superannuation. A further 12 percent say their retirement will be funded by other assets and investments while 12 percent plan to use a combination of superannuation, assets and investments and the pension.