Reimagining Australia’s Future: Lowering the Retirement Age and Introducing Universal Basic Income

A Bold New Vision for Australia

Imagine a country where the retirement age is lowered to 55, creating more job opportunities for younger generations and allowing older Australians to enjoy their lives while passing on their knowledge. Pair that with a Universal Basic Income (UBI) of $1,000 per week for Australians aged 30 and over, and you’ve got the recipe for a fairer, more innovative society. It may sound radical, but it’s an idea that could fundamentally reshape Australia for the better.

In this post, I’ll explain why this idea makes sense, the common objections you might hear, and how we can fund it in a way that benefits both big business and everyday Australians.

The Concept: Lower Retirement Age to 55, Paired with UBI

Let’s start with the core of the idea:

Lower the retirement age to 55: This opens up more job opportunities for younger Australians while giving older Australians the chance to enjoy their lives, contribute through mentorship or consulting, and spend more time with their families. It helps transfer knowledge between generations, improving family dynamics and allowing grandparents to play a more active role in their grandchildren’s lives.
Universal Basic Income (UBI) of $1,000 per week for Australians aged 30 and over: This financial support would give people the freedom to pursue their passions, create new businesses, or simply alleviate financial stress. This could lead to a surge in innovation, as people would have the security to take risks, study, or develop new ideas.

The social outcomes could be transformative, with positive effects on employment, family life, and innovation. But as with any big idea, there are arguments against it—and I’m here to address them.

The Arguments Against

As exciting as this idea is, it’s sure to face criticism. Let’s break down the most common objections and offer clear rebuttals.

1. “It’s Too Expensive to Fund”

The Argument: Critics will argue that lowering the retirement age and providing UBI is simply too costly. They’ll claim it would require either astronomical government spending or massive tax hikes.

The Rebuttal:
Yes, it’s a large financial commitment, but it’s one that will pay dividends. The cost of providing UBI for everyone aged 30 and over, based on Australia’s population, would be $811.2 billion annually. That’s a big number, but there are several ways to make this economically viable:

Progressive Taxation: Introducing slightly higher taxes on top earners and closing corporate loopholes could generate significant revenue.
Carbon and Automation Taxes: A carbon tax on major polluters and an automation tax on companies that replace human labor with machines could generate tens of billions annually, while also addressing other pressing challenges like climate change and job displacement.
Healthcare and Welfare Savings: Earlier retirement could reduce healthcare costs associated with work-related stress, and UBI could reduce reliance on welfare programs, creating savings that can be redirected toward the plan.
Economic Growth: By freeing people to pursue entrepreneurial and innovative ventures, the plan could boost economic activity, increasing tax revenue through growth in new businesses and industries.

2. “It Will Lead to a Declining Workforce and Skill Shortages”

The Argument: Opponents might claim that lowering the retirement age will shrink the workforce, especially in critical sectors, or that UBI might discourage people from working altogether.

The Rebuttal:

Opening Up New Jobs: By retiring at 55, older workers will create job openings for younger Australians eager to enter the workforce. This will help address current unemployment or underemployment issues.
Flexible Roles for Retirees: Those aged 55 and over will still have the opportunity to work part-time, consult, or mentor younger workers, allowing businesses to retain valuable experience while creating room for fresh talent.
UBI Won’t Kill Work Ethic: Studies from UBI trials around the world show that when people receive financial security, they often choose to continue working, pursue education, or start businesses. People don’t just stop contributing—they contribute in more innovative and productive ways.

3. “It Sounds Like Socialism”

The Argument: Some critics may argue that this plan sounds too much like socialism, with government handouts and wealth redistribution.

The Rebuttal:
This isn’t about handouts or socialist ideals—it’s about investing in human potential. By providing financial security, we’re giving Australians the chance to innovate, grow, and contribute more meaningfully to society. It’s not socialism; it’s smart economics that invests in the future of Australia’s workforce, families, and industries.

Moreover, corporations benefit from a healthier, wealthier society. A consumer base that isn’t living paycheck to paycheck will spend more, helping businesses grow and prosper.

4. “What About Intergenerational Equity?”

The Argument: Younger Australians under 30 might feel excluded from the benefits of this plan and claim that it’s unfair.

The Rebuttal:

Long-Term Benefits for All: While younger Australians may not immediately receive UBI, they will benefit from improved job opportunities, a stronger family structure with grandparents able to play a larger role, and the promise of receiving UBI once they turn 30.
Healthier Society for Future Generations: By building a stronger foundation for financial stability now, younger generations will inherit a healthier, more innovative economy, giving them better opportunities down the road.

How Much Will It Cost and How Will We Pay for It?

Now let’s talk numbers. The total cost of providing UBI to Australians aged 30 and over is an estimated $811.2 billion per year. But don’t let that figure scare you. Here’s how we could fund this ambitious plan:

Progressive Taxation: By slightly increasing taxes on the wealthiest Australians and closing corporate tax loopholes, we could generate billions in revenue.
Carbon Tax: Implementing a carbon tax of $30-$50 per ton of CO2 could generate $15-$20 billion annually, while also addressing climate change.
Automation Tax: As automation continues to replace jobs, taxing highly automated businesses could offset job losses while funding UBI.
Healthcare and Welfare Savings: Early retirement and UBI could reduce strain on healthcare and welfare systems, saving billions that can be redirected into funding the program.
Economic Growth: With more Australians free to innovate and pursue passions, the resulting economic growth could generate additional tax revenue. More businesses, more innovation, and more spending mean more money going back into the economy.

The Benefits of a New Vision for Australia

This plan isn’t just about supporting retirees or providing UBI—it’s about reimagining the future. It’s a way to create a society where people can thrive, where family structures are stronger, and where economic innovation is encouraged, not stifled.

By lowering the retirement age and providing UBI, we create:

More jobs for younger Australians,
Stronger family dynamics, with grandparents playing a larger role in caregiving and mentorship,
A more innovative economy, where people can pursue passions without financial stress, and
A healthier society, with reduced stress and financial strain on individuals and families.

It’s time for a bold new vision—one where every Australian has the chance to live comfortably, pursue their dreams, and contribute to a stronger, more vibrant society.

Building a Fairer, More Prosperous Australia

By lowering the retirement age and introducing UBI, we can build a society that benefits everyone—from businesses to families. It’s not socialism; it’s a smart investment in Australia’s future. By making sure that everyone has the opportunity to live comfortably and pursue their passions, we create a nation that is not just wealthier, but happier, healthier, and more innovative.

It’s time to think big. Let’s reimagine Australia together