Just under a quarter of the 5.5 million baby boomers in Australia believe that they will need to work into their eighties because they don’t have enough money to finance a work-free retirement, according to research conducted by Suncorp Superannuation.
The Suncorp Superannuation’s research report, ‘The Rise of the Grudge Workforce’ (released in November 2013) found that many Australians will be forced to add a decade to their working lives “out of necessity, not choice”.
Although around half (48%) of Australians see their ideal retirement age between 60 and 69 years, with the average ideal retirement age being 65 years, a significant 42% of Australians surveyed believe they will need to work into their seventies due to insufficient retirement funds.
Current data seems to endorse these beliefs: according to the Australian Bureau of Statistics, currently 25% of Australians aged 65 to 69 years of age are still working, and more are working full-time rather than part-time.
More than 1.3 million Australian baby boomers (24%) believe they will be working beyond their 75th birthday to finance their retirement, based on the expectation that they will need $300,000 or more in super benefits before they can retire.
Baby boomers are not the only generation expecting to work longer. According to the Suncorp Superannuation study, one third of all Australians surveyed believe they will have to work 10 or more years beyond their ideal retirement age, while around 20% believe they will have to work 15 year beyond their ideal retirement age.
What is particularly interesting about the findings, although not perhaps surprising, is that the younger you are, the greater the expectations that you will retire at an early age, but when asked about the reality of funding a retirement, Generation Y were more likely to expect to retire beyond the age of 65.
Suncorp Superannuation has created an infographic summarising the key findings from the research (set out below).