Prime Minister Scott Morrison has abandoned plans to increase the pension age to 70 by the year 2035.

The Coalition had wanted to increase the pension age to ensure the system remained affordable.

But Mr Morrison says that won’t be happening under his leadership, and the retirement age will stay at 67.

Deputy Director of the Melbourne Institute Roger Wilkins tells Ross Greenwood the move was probably politically motivated and data shows many Australians are already choosing to work for longer.

“I suppose it would have been fairly ineffective… having the pension age at 70 if your goal was to make people work longer.

“I think if you want to make people work longer, you’ve got to be looking a lot more closely at superannuation and when you can access that.”

Recent employment figures have shown more Australians are working for longer and that’s expected to continue.

“If you’re doing physically demanding work it’s a bit harder to work to those older ages,” Roger says.

“But if you’re doing professional-type jobs, particularly jobs where you’re using your brain more than your brawn… people are choosing to stay in those jobs until older ages.”

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