Joe Hockey
Joe Hockey

Making old people work longer not enough Joe Hockey says

IN LESS than a decade, Australia's retirement age will have crept up to 67 but that may not be enough, according to Treasurer Joe Hockey.

He told a meeting in Washington that with government spending on the age pension likely to increase to $93 billion by 2030, raising Australia's age pension could be an option.

Under the former Rudd Labor Government, the pension age was put on a path to increase to 66 by mid-2019 and to 67 four years later.

The Treasurer quoted from an international Monetary Fund report that found "increasing the pension age is a worthy consideration".

In the speech, Mr Hockey went on to foreshadow more cuts to those on welfare benefits ahead of May's Federal Budget.

"Welfare must be a safety net, not a cargo net," he said.

Improving the budget figures and the economy will take "difficult decisions" that will affect households, companies and the public sector.

"The onus is on us to explain why these decisions need to be made," he said.