Australia Defies Global Trend on Pension Costs Thanks to Superannuation

Treasurer Jim Chalmers will release data showing that the cost of the age pension to taxpayers is falling, despite more than 9 million people reaching retirement age over the next 40 years.

The forecast, part of the upcoming intergenerational report, suggests that by 2066 there will be about 9 million people over the age pension age of 67.

The number of people on the pension is expected to fall from 66 per cent last year to 52 per cent, with budget spending on the pension falling from 2.3 per cent of GDP last year to 1.8 per cent by the mid-2060s.

This is in contrast to other countries, where pension spending as a share of the economy is expected to increase: 10 per cent in the UK, 8 per cent in Canada, 7 per cent in New Zealand and 6 per cent in the US.

The superannuation system has been credited with taking pressure off social security outlays, making the budget more sustainable as a result.