In this guide
More Australians than ever before are continuing or returning to work beyond their 65th birthday. Semi-retirement is particularly popular, with more than half of working people in this age group employed part time.
Working beyond what many would consider a traditional retirement age can have benefits for physical and mental health, but the job you do and the reasons for working are important. Staying put for financial reasons or continuing in a job with limited autonomy and low pay can lead to worse health outcomes.
Staying in the workforce almost always means more money in your pocket and the lifestyle improvements that come with it. Whether the financial benefit is enough to keep you working depends on your tax position and the effect additional income will have on any social security benefits you and your partner are entitled to.
How common is work beyond age 65?
According to data from the Australian Bureau of Statistics (ABS) from September 2025, almost 16% of Australians 65 or older are working or looking for work. A total of 770,000 people in this age group were employed during the month.
A higher proportion of men are working or seeking work than women, with almost one in five men in the workforce versus one in seven women.
In that same period, approximately 56% of older workers were employed part time and the remainder worked full time. This reflects a significant shift to part-time work as we age. Only 21% of workers in the 45–49 age bracket worked part time during the same period.
Free eBook
Retirement planning for beginners
Our easy-to-follow guide walks you through the fundamentals, giving you the confidence to start your own retirement plans.
"*" indicates required fields
Australians are also working longer. During the last 20 years, the proportion of people aged 65 or more in the workforce has doubled (from 7.8% in 2005 to 16% in 2025).
Why are we working longer? Part of the reason could be the modernisation of the workforce. The latest available analysis from the Australian Institute of Health and Welfare (AIHW) indicates the top three job categories for people in the 65+ age group are professionals, managers and clerical workers. Continuing work in more physical jobs is less common.
Australians today also have longer life expectancy and more expected years of disability-free life. A longer, healthier life means more opportunity to work for longer and a greater financial need to do so, to fund a longer, more active retirement.
Lastly, recent decades have brought increases to the age at which superannuation withdrawals and Age Pension become available. The super preservation age rose from 55 to 60 between 2015 and 2024 and the Age Pension age has increased from 60 to 67 for women and from 65 to 67 for men.
With the availability of these benefits delayed, Australians who can’t afford to retire without them must delay their retirement, and societal expectations about an appropriate age to leave work are adjusted.
The health impact of remaining in the workforce
Findings on the effect of prolonged work on health are a mixed bag.
A 2021 review published by the BMC Public Health journal found that working at 65 and beyond is most likely to have health benefits when work is high quality, well paid and part time. Employees in these roles more often had better physical and mental health than their retired counterparts.
On the other hand, many studies that were part of the review only found health benefits for men, while the effect for women was neutral or negative. The findings also indicated that continued work can negatively impact both mental and physical health if it is high demand or poorly paid.
2026 SMSF calendar
Our free calendar includes due dates for important documents plus suggested dates for trustee meetings and other strategic issues for your SMSF.
"*" indicates required fields
The reason for continued work is also likely to be important. A UK study found continued work had a positive effect on quality of life when participants remained in work to keep active or for enjoyment, but a negative effect for those who kept working for financial reasons.
Employment provides important social connections, a sense of purpose and the opportunity for more diversity in work environments.
Reasons for returning to work
The reasons Australians return to work after retiring can shed some light on the benefits that continued work can offer.
The latest ABS data from their 2024–25 Retirement and Retirement Intentions report asked retirees to report the main reason they returned to work.
Men aged 67 or older most often selected that they found retirement boring. Work offers stimulation and something to keep you occupied. The second-most reported reason was financial need, followed by being offered an interesting opportunity and former employers asking them to return.
Interestingly, the main drivers of a return to work for women in the same age group were different. Women most frequently chose financial need as their main reason for returning to work, followed by boredom, being asked back by a former employer and an improvement in their own health. No men reported their improved health as the main reason to return to work, although some did indicate it was part of their decision.
Rejoining the workforce may therefore have different quality of life impacts for men and women. It’s possible that women, on average, find their return to work after retirement less positive than men, who are more likely to restart employment because of a desire to do so rather than out of monetary need.
Financial benefits of continued work
Staying at work in your later years or returning to a job after retiring generally provides a much clearer boost financially than to wellness, although it is important to consider the impact of tax and changes to Age Pension entitlements.
Free eBook
Beginners guide to the Age Pension
Learn how the Age Pension is assessed, and how to apply.
"*" indicates required fields
Withdrawals from super are tax free for anyone older than 60, except when paid from an untaxed super fund. Any Age Pension entitlement is taxable, as is income from any investments outside super.
A person eligible for the senior Australians and pensioners tax offset (SAPTO) can have taxable income of up to $35,800 per year before paying any income tax. As a result, many older Australians in the workforce pay limited tax or no tax at all on their employment income.
Income from work can reduce your Age Pension and other Centrelink or DVA entitlements, but it’s not all bad news. The work bonus means the first $300 a fortnight you earn can’t affect the Age Pension or DVA Pension and the work bonus bank can also lessen the impact.
Remember that if your partner is receiving social security benefits, then your income can affect their payments as well as your own. It’s important to do your research before deciding. Centrelink’s financial information service can help.
Working also opens the opportunity for you to continue to salary sacrifice to super or make personal tax-deductible contributions. These concessional contributions can reduce income tax and give your balance a boost.
As a bonus, you can make unlimited withdrawals from super when you’re aged 65 or more, so your money isn’t locked away. Unfortunately, no voluntary contributions are permitted once you turn 75, but your employer is required to continue paying their compulsory super contributions for you.
Finding fulfilling work in later life
If you’d like to stay in the workforce, finding the right role is important. With age comes valuable experience and perhaps the confidence to go out on your own. The over-50s are now the fastest-growing entrepreneurial group in Australia.
Don’t feel you have to stay in your current position or even the same industry. Perhaps a small business close to home could suit the hours you would like to work and cut the stress of a commute.
Manage your retirement savings with confidence – for free
Get practical guidance from independent experts to help you make the most of your finances in retirement with a free SuperGuide account.
Find out more
Leave a Reply
You must be logged in to post a comment.