Older workers hold on longer

AUSTRALIA'S ageing workforce has no intention of going quietly into retirement and says financial concerns are the main reason for staying put, according to new data from the Australian Bureau of Statistics.

By InvestSMART · 14 Dec 2011

By InvestSMART ·
14 Dec 2011

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A survey found 2.6 million people aged over 45 were in full-time work with 41 per cent looking to shift to some form of part-time work before leaving the workforce entirely.

But 653,800 Australian workers declared that they never intend to retire from the labour force and another 399,300 said they did not know whether retirement was an option.

For the 3.9 million workers surveyed who planned to retire at some stage, 36 per cent said the timing was reliant on the state of their financial security.

The study revealed that of the 8.5 million people in Australia aged 45 years and over, 4.9 million (57 per cent) were currently employed, another 3.2 million (36 per cent) had retired while the remaining 340,300 (4 per cent) did not currently have a job but had not retired.

Personal health or physical ability also influenced retirement decisions for older workers with about 390,000 workers (25 per cent) saying they would leave the workforce when they became eligible for a pension.

About half of Australia's older workers expect their superannuation to be their main source of income at retirement, with another quarter reporting they would rely on a government pension or allowance to survive.

These figures were in sharp contrast to those already retired. Just 17 per cent of current retirees used their superannuation as the main source of personal income with the majority 66 per cent using a government pension for the same reason.

The average age at retirement for Australians in the past five years was 61. Workers who intend to retire, plan to do so at almost 63 years of age.

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Frequently Asked Questions about this Article…

Why are older Australians staying in the workforce longer?

New Australian Bureau of Statistics data show financial concerns are the main reason older workers stay employed longer — many feel they need to keep earning. Personal health and eligibility for a pension also influence decisions, so people often balance money, wellbeing and pension timing when deciding whether to keep working.

How many Australians aged 45 and over are still working full-time?

The survey found about 2.6 million people aged over 45 were in full-time work. Across the 8.5 million Australians aged 45+, 4.9 million (57%) were currently employed in some capacity.

What share of older workers plan to move to part-time work before retiring?

Around 41% of older workers said they plan to shift to some form of part-time work before leaving the workforce entirely, indicating a common ‘phased retirement’ approach.

How many older Australians say they never intend to retire or are unsure about retiring?

The data showed 653,800 older Australian workers said they never intend to retire, while another 399,300 said they did not know whether retirement was an option for them.

How does financial security affect the timing of retirement for older workers?

Among the 3.9 million workers who plan to retire at some stage, 36% said the timing of their retirement depends on the state of their financial security — meaning many will delay or accelerate retirement based on savings, superannuation and other financial factors.

What do older workers expect to rely on for income in retirement: superannuation or government pension?

About half of Australia’s older workers expect their superannuation to be their main source of income at retirement, while roughly a quarter expect to rely on a government pension or allowance.

How do expectations about retirement income compare with the reality for current retirees?

There’s a clear gap: only 17% of current retirees use superannuation as their main personal income source, while a majority (about 66%) rely on a government pension — less reliance on super in practice than many older workers expect.

What is the average actual retirement age and the planned retirement age among workers?

The average age at retirement in the past five years was 61. Workers who intend to retire plan to do so at almost 63 years of age, showing planned retirements tend to be slightly later than recent actual retirements.