If you’re approaching retirement and wondering whether you’ll be ready to stop working completely, you’re not alone. The reality is, retirement in Australia is changing, and it will likely look quite different from what your parents experienced.
Recent analysis by KPMG of the Australian Bureau of Statistics labour force survey data1 shows that Australians are working longer than ever before. Men now expect to retire at 67, while women anticipate finishing work at 65.3 years. That’s up by more than two years for men and over a year for women in just the past decade.
But here’s what’s interesting: this isn’t just about the rising Age Pension age. There’s a growing group of older Australians who genuinely want to work well past traditional retirement age, and experts are calling them ‘ageless workers’.
Twenty years ago, only one in ten men was still working at the age of 70. Today, it’s one in four. Even among men in their late seventies, almost one in ten remains in the workforce. For women, the shift has been even more dramatic, with participation rates for those in their seventies nearly doubling over the past decade.
Why the change?
The nature of work itself has evolved. If you’re in a professional or office-based role, working into your seventies is much more feasible than it would be in physically demanding jobs. As KPMG Urban Economist Terry Rawnsley aptly put it: pulling out a laptop at 75 is considerably easier than laying bricks.
The pandemic also played a role. Many workers delayed retirement plans due to travel restrictions, and after ticking off their bucket-list adventures, they’ve returned to the workforce refreshed and engaged.
The rise of semi-retirement
Perhaps the most encouraging trend is what’s happening between full-time work and complete retirement. Most men now spend about 2.8 years in this transition phase, while women typically spend around three years.
This “semi-retirement” phase – working part-time with flexibility – offers the best of both worlds. You can supplement your retirement savings, maintain social connections, stay mentally engaged, and potentially help support your children or grandchildren, all while enjoying more freedom than full-time work allows.
The message? You don’t have to choose between all-or-nothing anymore. Many Australians are discovering that a gradual transition into retirement, on their terms, can lead to a more fulfilling and financially comfortable lifestyle.
Call us to find out how we can help you transition to your retirement on your terms.
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