Do you plan to retire early or continue working as long as possible? Many older Australians are increasingly choosing the latter. In Australia, retirement ages are the highest they have been since 1972 for men and 1971 for women. Men can now expect to retire at 66, while women can expect to retire at 64.Over the past twenty years, this figure has risen by about three years. 20 per cent of new employment since 2019 has been those over 55.
Undoubtedly, financial factors are a significant player in retirement decisions, especially during a cost-of-living crisis. However, there are many other factors at play in this trend.
Thanks to The Australian, the ABC and the Sydney Morning Herald, we explore why Australians are increasingly choosing to delay retirement.
The pandemic changed the nature of work and made it easier for older workers to remain in the workforce. The rise of working from home has increased flexibility in how people choose to work. Older Australians, especially those working in professional industries, are now able to semi-retire and remain engaged in the workforce from their homes or even coastal properties. This means that they can enjoy some of the benefits and flexibility of retirement while still dabbling in the workforce. Research has shown that those in professional roles, largely in Australia’s capital cities, are responsible for driving up the retirement age. Reflecting this trend, studies show the average retirement age increases the more highly qualified you are.
Not only are professionals working flexibly, but they are also making up an increasing percentage of the Australian workforce. The Australian economy increasingly comprises white-collar, service-based, and professional roles. In an interview with the Sydney Morning Herald, economist Terry Rawnsley said it is much easier to work for longer in these industries than in physically demanding jobs such as trades.
“If you’re a brickie or a concreter, the physical demands of work make it a bit more challenging to keep working well past the age of 65, but if you’re a chief financial officer, you can keep tapping away at the laptop as long as required,” he said.
Because of this, Rawnsley expects that the retirement age will only continue to rise.
As people are living longer, retiring early can leave you with a lot of time to fill. Some people retire from work only to find themselves bored and seeking to return to the workforce. While many envisage spending their retirement playing golf or going fishing, the novelty of this can wear off quickly.
Older Australians also increasingly recognise the social benefits of remaining in the workforce. Today’s society views work as more than just earning a living; it’s also about social interactions and the sense of identity it provides. Studies have shown that maintaining quality relationships can help increase health and happiness as you age. For many, remaining in the workforce is a good way to maintain positive relationships. For many, work provides them with a sense of purpose. Many people find their work to be a significant part of their identity, and the social interactions they gain from it are invaluable.
When considering retirement, many people consider their financial situation but neglect to consider other factors. Retirement is an individual decision, and only the individual can know when they are ready.
Are you looking for a new role? Public Service Resumes can help. We are pleased to offer various services for all career stages, including our resume and cover letter writing service.