ONCE upon a time, retirement at 65 marked the end of work and the beginning of leisure. But that tidy divide is fading fast, with new research showing more Australians are choosing – or needing – to work longer.
According to a recent KPMG report, the expected retirement age has climbed steadily over the past decade. Men now expect to retire at 67, up more than two years since 2014–15, while women are retiring at 65.3, up by just over a year.
Several factors are driving the shift – including higher Age Pension eligibility ages, flexible work options, and the rise of remote working. Many older Australians are embracing “semi-retirement,” supplementing their savings with part-time or consulting roles.
“It fosters social interaction and offers a sense of purpose,” says KPMG economist Terry Rawnsley, noting that the “ageless worker” is becoming a long-term structural feature of the modern labour market.
However, not all seniors can take advantage of this trend. National Seniors Australia (NSA) says many older Australians who want to work face barriers such as tax complexity, pension income limits, and age discrimination. NSA’s Fairness in Retirement Income campaign is calling on government to make the system simpler and fairer.
Among its proposals:
Exempt employment income from pension income tests.
Introduce a universal pension without means testing.
Make deeming rates fair and transparent.
Increase gifting limits so retirees can better support family members.
With Australians living longer, healthier lives the challenge now, says NSA, is to ensure older Australians who want to stay in the workforce are encouraged – not penalised – for doing so.
