The federal government has introduced pension reforms in the budget for 2025-26.
The Finance Minister stated that the pension scheme had been altered through executive orders over the past few decades, placing a significant burden on the national treasury.
To address this issue, the government has implemented reforms aimed at reducing the financial strain.
The key features of the pension reforms include discouraging early retirement and linking pension increases to the Consumer Price Index.
Additionally, family pension duration has been limited to 10 years after the spouse’s demise, and multiple pensions have been abolished.
Furthermore, individuals who secure employment after retirement will be required to choose between receiving a pension or a salary.
