What you need to know about the pension qualifying age
FROM 1 July next year the qualifying age for the Age Pension will start to gradually increase by six months every two years until it reaches 67 in 2023.
This change will affect people born after 1 July 1952, as they plan for their retirement.
The reason for the change is to counterbalance the cost of Australia's growing ageing population. Over the next 40 years the number of people aged 65 and over will more than double to 8.9 million people.
Currently, 4.5 people of working age support every person aged 65 years and over. But as a result of the increasing ageing population, that will drop to 2.7 people by 2054-55.
The government goes on to explain that when the Age Pension was introduced in 1909, it was set at 8 years after the average life expectancy of 57.
However, not the Age Pension is set 18 years beforw our average life expectancy of 83.
As such, starting next year, the qualifying age for the Age Pension will progressively increase by six months every two years, reaching 67 years by July 1, 2023.