'Miserable view': Former PM slams proposals for retirement

FORMER prime minister Paul Keating has blasted a report that supports raising the retirement age as having a "miserable view" of society.

The Grattan Institute has recommended that the Australian government scrap plans to raise compulsory super payments from 9.5 per cent to 12 per cent and, instead, increase the retirement age to 70.

However, the report, and Grattan Institute chief executive John Daley, came under heavy fire from Mr Keating, whose government introduced compulsory superannuation contributions, when he appeared on the ABC's 7:30 program.

Mr Keating said Mr Daley's "miserable view about having two Australias" was out of touch with everyday Australians.

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"The privileged Australia where the wealthy people can have all sorts of assets but ordinary people are condemned to the pension," he said.

"This is $460 a week. I mean don't whoop it up on 460 bucks a week. This is the John Daley view of the world.

"Daley's recommending people work till 70, put their house in the assets test where now it isn't. In other words, you eat your house.

"Work till 70, eat your house, and then basically find yourself at a certain point in your life where you just don't have financial assets."

However, Mr Daley hit back at the form prime minister, claiming on social media that "most Australians die with savings almost as large as when their (sic) retired".

"If Paul Keating actually read our report rather than disparaging anyone who disagrees with him, he would know there's lots of evidence that a higher Super Guarantee will lead to lower wages, including the Henry Tax Review, the Fair Work Commission, and leading academics," he wrote on Twitter.

But the report and Mr Daley weren't the only one in Mr Keating's crosshairs, claiming the current proposal of raising compulsory payments to 12 per cent "barely cut it".

"When I introduced super 32 years ago, people retired at about 65 and they died about 83 or 85," Mr Keating said.

"In the 30 years since, people are living three to five years longer, so people now live into their late 80s and the superannuation pool isn't large enough to maintain the sort of standard of living we wish for them."


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