As people live longer, mature age is being redefined. The number of older Australians remaining in the workforce has been steadily rising for decades, but new research suggests it may have reached a plateau.
According to new research by KPMG, the expected retirement age over the past two decades has increased by three years from 63.3 to 66.2 years for men, and from 61.6 to 64.8 years for women. During the COVID-19 pandemic, the Australian labour force grew by 185,000 workers, with those aged 55 and older representing almost 70% of that growth.
Between 2019 to 2021, women have been increasingly drawn into full-time employment, with the expected age of retirement from full-time work increasing by more than a year. Meanwhile, the increased expected retirement age for men during that period was driven by increases in part-time employment.
KPMG found that the increase is due to a long-term shift away from physically demanding jobs, stronger labour market conditions and, in recent years, more people working from home.
People staying employed for longer is good for business. They’re continuing to pay tax and businesses have more access to skilled workers for longer, but can we expect to continue extending our working lives and will there be enough older workers to sustain the growth we saw during the pandemic era?
The search for meaning
Surveying 5,000 Australians over the age of 50, the Australian Seniors Quality of Life 2022 Report explores how we have reprioritised our lives since the pandemic, and what this means for retirement planning. With years of wisdom under our belt, recent events have proven just how resilient we can be to change, with many of us seeing it as an opportunity to reconnect with our core values and pursue them in the next chapter of our lives.
The Report reveals that 87% of Australians aged 50+ believe the top requirements for quality of life in retirement include good physical health (87%), having enough money to live comfortably (85%), good mental health (82%), and living independently for as long as possible (79%).
The top three tips for planning retirement are having a positive and optimistic outlook (69%), being flexible and adaptable (68%) and learning how to save and spend your money wisely (65%).
Seven in 10 seniors believe COVID-19 has influenced their appreciation of things that truly define quality of life, and one in three said their priorities changed because of the pandemic.
For many, the decision to keep working beyond their 60s and 70s is a financial one. For others, working gives their lives meaning and purpose. Many say the term ‘retirement’ should be retired, as it no longer reflects their experiences or expectations of later life.
Far from viewing retirement as the final curtain call, a growing number of retirees see the milestone as the start of something new.
Redefining retirement
One inspiring senior, Dr Wendy Dobinson, decided it’s never too late to follow your dreams. At the age of 50, she enrolled in her first ballet class. She is now 65 and hooked on dance.
“When I was 50, my youngest son decided to take up ballet as a profession and I thought I’d better learn a little more about it,” says Wendy, a GP who lives in New Zealand. “I was a little anxious before my first class, but I loved it and I’ve been dancing ever since.”
Dancing for wellbeing is a growing trend. Whether you’ve little or no prior dance experience, traditional ballet can improve strength, endurance, flexibility and balance for people of all ages. Wendy says it has improved her health and changed the way she prescribes treatment to her patients.
“Doing ballet has definitely reduced things like neck pain and that sort of thing,” she says. “It has also reinforced to me how important it is when I’m recommending exercise to my patients, that they do something they love because they’re much more likely to stick to it. I know I’m more likely to do something if I love it.”
The secret to living well, for longer
Does ‘older’ really mean ‘wiser’? Many agree that it does. Some of the best advice they say they would give their younger selves includes being financially smart, working hard and just enjoying life. They also agree that along with eating well and exercising, being happy and content is the secret to living longer.
Patricia, 78, works four days a week in a busy Sydney office. She says she feels more fit, healthy and happy now than she has in years. “I’m not thinking of retiring yet,” she says. “I enjoy my job and I still have so much to offer.”
Leonora, 77, enrolled in a Certificate 111 course in Community Services at Goulburn TAFE at age 74. “I was the oldest person in my course, but we had a very supportive teacher, and I didn’t really think about my age,” she says.
Leonora now offers residential care as a community support worker between Canberra and Goulburn three days a week and doesn’t see any reason to slow down. “Some of my clients are younger than I am, but I don’t think age has anything to do with it. The work is very rewarding.”
Lisa, 65, runs a picture framing shop in Sydney and says she can’t afford to retire. “I’m lucky that I like this work because I can’t afford to retire. I have some super from when I was working in galleries, but it wouldn’t last long. I’m paying off my mortgage and my daughter and young grandson live with me. I’m happy to go on working to keep a roof over our heads.”
Patrick, 68, owns a café in Sydney’s inner west. “I’ve thought about selling up now and again, and I suppose one day I will, but the truth is I still like what I do. I like my customers and my staff. I think I would feel disconnected if I let go of the reins now.”
John, 64, is a business consultant from Melbourne. He says personal fulfillment is the main reason he can’t imagine retiring. “My parents migrated to Australia in the 1950s with next to nothing,” he says. “My dad drove a cab until he died, and my mother worked part-time jobs her whole life. They instilled a strong work ethic in all us kids. It means a lot to me to keep working. I like to feel I’m still contributing in some way.”
Liz, 72, from Canberra, cringes when she hears terms like ‘elderly’ and ‘aged’ being applied to people in their 60s and 70s. “My parents thought they were over the hill at 60-something, but I don’t think anybody my age does,” says Liz. “The baby boomer generation changed the world in so many ways, it’s no surprise we’re also changing what ageing looks like.”
As one Australian Seniors survey respondent put it: “At the end of the day, we know we have life experiences that younger generations can learn from and our wisdom should not go unnoticed, even when it comes to the issues and decisions that will impact our grandchildren and even our great grandchildren.”
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