New research has challenged the traditional notion of when Australians expect to retire, showing one-third of seniors aged 65 and over continue to work in a full or part-time capacity, largely driven by financial needs and social engagement.
The Association of Superannuation Funds of Australia’s (ASFA) “Survey on Superannuation and Retirement: Pathways to Retirement” found 33 per cent of people aged 65 to 69 and 8 per cent of people aged 70 and over are either employed or actively seeking work.
Additionally, many older Australians may prefer more informal work arrangements as they age. In the 65 to 69 age group, 16 per cent work part-time and for those aged 70 and over, 6 per cent were working part-time or casually.
The study also highlighted not all motivations for continuing to work are based on financial considerations, with 25 per cent of those aged 65 and over who remain in the workforce doing so for non-financial reasons, such as maintaining social connections or staying physically and mentally active.
However, about 14 per cent of this age group continue to work because they believe they cannot afford to retire.
For others, early retirement is often driven by health issues or the need to care for family members, with more than 20 per cent of workers retiring before the age of 60. This trend disproportionately affects women, who are more likely to take on caregiving responsibilities.
ASFA chief executive Mary Delahunty acknowledged retirement is no longer synonymous with reaching one’s 60s or becoming eligible for the age pension and emphasised the importance of flexible retirement and superannuation policies to accommodate this trend.
“This research shows us the days of working to customary retirement age and then putting your feet up are long gone,” Delahunty noted.
“The rules around superannuation need to change to reflect this. Currently, Australians who’ve hit preservation age can’t draw down on their super and top up the same account.
“Being forced to have two or more accounts – one account to take money from and one to put money into – doesn’t make sense with our modern, fluid approaches to retirement.”
Other studies examining the expectations of retirees have shown similar findings, with many Australians anticipating working beyond the age of 67 as a significant portion feel relying on the age pension alone is insufficient to meet their financial needs.
The ASFA survey gathered the responses of over 1500 adults, representative of the broader population in terms of age, gender, education and whether respondents reside in urban or regional areas.
