The pension age is scheduled to increase to 67 by mid-2023

Katie Woolf spoke with COTA NT CEO Sue Shearer.

The Treasurer Josh Frydenberg has urged older Australians to adapt their skills in order to stay in the workforce for longer, warning the nation's ageing population represents an "economic time bomb".  In an address to the Committee for Economic Development of Australia, Mr Frydenberg said while Australians are living longer, over 60s still make up a small fraction of the working age population.

"As more Australians live longer, the number of working age Australians for every person aged over 65 diminishes, whereas in 1974-75 it was 7.4 to 1 and 45 later in 2014-15, it was 4.5 to 1,"he said.  "It’s estimated over the next four decades to fall to just 2.7 to 1".

Mr Frydenberg said with Australians living longer than ever before, older Australians should consider undergoing new training.

"With Australians in work currently undertaking 80 percent of their training before the age of twenty-one, this will have to change if we want to continue to see more Australians stay engaged in work for longer,"he said.  

Sue Shearer was able to explain the true implications of such the changes with the age.

Listen to the full chat here: