NACCHO Aboriginal Health and #ClosingtheGap : Should the government lower retirement age thresholds for Indigenous Australians, as lower life expectancy means our mob not getting fair access to the pension and super ?

” The Indigenous population is more likely not to reach preservation age, so question whether the system is fit for purpose for this cohort.

This has a significant effect on the relevance of preservation age for these members who are overwhelmingly more likely to take their accrued super under permanent incapacity and other early release provisions than at retirement age.”

Indigenous Australians were much more likely to receive a disability support pension than the age pension but in the total population this was not the case, the Australian Institute of Superannuation Trustees said, suggesting Indigenous people were more likely to become disabled before retirement.

Read all NACCHO Aboriginal Health and Elder Articles HERE 

Read AIHW Report on disability support for Indigenous Australians 

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We are a national Indigenous financial foundation, led by an Indigenous board, striving to achieve economic freedom for First Nations.

​We operate on a national basis and offer programs in financial literacy, research and superannuation outreach to Aboriginal and Torres Strait Islander people. WEBSITE

Media Coverage

Superannuation funds are agitating for lower retirement age thresholds for Indigenous Australians, warning lower life expectancy means they’re not getting fair access to the pension and super.

Major fund AustralianSuper, consulting firm PricewaterhouseCoopers, the Australian Institute of Superannuation Trustees and the Australian Council of Trade Unions all raised concerns about Indigenous access to funds in retirement as part of submissions to a government review.

Australian Bureau of Statistics data shows for the Aboriginal and Torres Strait Islander population born between 2015 and 2017 the life expectancy for men was 71.6 years and for women was 75.6 years. Non-Indigenous men and women have a life expectancy of 80.2 years and 83.4 years respectively.

Gap between Indigenous and non-Indigenous life expectancy (Close the Gap Report, 2019) ANTAR

In the past decade there has been a small narrowing in this life expectancy gap. The federal government has committed $4.1 billion for Indigenous health initiatives for four years from 2019-20.

AustralianSuper’s submission to the retirement income review this week specifically pointed to this gap as a concern for the superannuation system.

The preservation age, which is when someone can access their super, is currently between 55 and 60 depending on date of birth.

The pension age is 66 for those born from 1954 to June 1955, rising to 67 years for those born after 1957.

Treasurer Josh Frydenberg last year ruled out raising the pension age to 70 as part of the first retirement income review since the 1990s. But reducing the superannuation age for specific groups of people is unlikely to be a popular proposal.

The Department of Prime Minister and Cabinet in a 2018 submission to the Banking Royal Commission said current legislation allows the early release of superannuation funds to pay for medical treatment and did not support changing the age requirements as it would run counter to the “universal aspect” of the superannuation system.

The AIST, which is part of the cross-industry Indigenous Superannuation Working Group, said that the retirement system was too often based on assessments about “full-time, male, continuously-employed, higher income earners”.

The ACTU, which has pushed for a raft of changes including increasing the super guarantee for women, wants immediate reform to lower the age pension eligibility and preservation age for Aboriginal and Torres Strait

The submission also recommends superannuation funds and relevant government services are offered in Indigenous languages and a reduction in the paperwork needed to prove ancestry.

Consulting firm PwC also flagged “unique challenges in retirement” for Aboriginal and Torres Strait islanders.

A spokesman for Minister for Indigenous Australians Ken Wyatt said that while the life expectancy gap needed to be considered there were “systemic and structural transformations required to achieve better life outcomes for Aboriginal and Torres Strait Islander people in older age”.

He said a government strategy to close the gap was focused on economic development to help intergenerational change for longer term wellbeing.

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