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Older employee incentive to aid retirement system

The Financial Services Council has welcomed the Budget measure to offer employers a $10,000 incentive for hiring older workers, claiming long-term retirement benefits.

Last night Treasurer Joe Hockey announced a new $524.8 million initiative creating incentives to employ Australians aged 50 or older that have been in a wage-subsidy program for six months or more.

“Giving employers an incentive of $10,000 to hire older Australians who have been on income support for at least six months is a positive step towards ensuring people are employed for longer,” said FSC chief executive John Brogden in a statement.

“The retirement savings of Australians are increased by $200 billion for every year a person remains in the workforce,” Mr Brogden said.

The FSC also welcomed the announcement that the pension age will be raised to 70 by 20135, describing the move as a “necessary and important” reform.

“Many Australians starting work today will live for more than one century. It is critical that the increased life expectancy of Australians is the driver for Age Pension and superannuation policy, so future generations of taxpayers are not burdened with the cost of an ageing population,” Mr Brogden said.

“The government needs to match the Age Pension increase with an increase in preservation age to 65.”