Rising Pension Age and Policy Changes
Australian millennials are contributing to a pension system that experts warn may not support them in retirement, according to new research from Macquarie University. The study predicts that the pension eligibility age could rise to 70 by 2043.
The research indicates that nearly half of Australian households are not on track for a comfortable retirement, even when combining superannuation and the pension. Adjustments to pension policies in 2025-26 reduced payments for about 180,000 Australians.
OpenCorp Executive Director Michael Beresford warns that millennials relying solely on superannuation and the pension may face a significant shortfall. He stresses that the superannuation system is inaccessible until age 67, while the pension will likely cover less over time.
Alternative Investment Strategies
New property investment is becoming a popular strategy, particularly among younger professional households. The benefits include tax depreciation, rental income, and long-term capital growth. Melbourne teachers Ross and Genevieve Kirwan exemplify this approach. They purchased their first investment property in Queensland in 2020 for about $100 per week to hold. This move enabled them to pay off their family home and plan a second purchase by 2026.
Beresford highlights the importance of financial planning: “The fundamentals of building financial security outside of super are not complicated, but they do require time.”
Macquarie University’s research suggests the pension age may need to rise incrementally, potentially reaching 68 by 2029 and 70 by 2043. Meanwhile, policy changes continue to tighten pension eligibility and coverage. The age pension system, introduced in 1908, was designed for a different demographic landscape. At that time, life expectancy was shorter, and the workforce was larger relative to the retired population.
Today, with an ageing population and fewer workers, maintaining the current pension system poses significant challenges. Many millennials are exploring alternative retirement strategies beyond traditional superannuation. OpenCorp remains available for discussions on retirement strategies and the changing financial landscape for Australian millennials.
Last updated: 9 June 2026, 12:25 pm
