A grim trend has emerged for hundreds of thousands of Australians nearing the typical retirement age. While many people hope to leave the workforce in their mid-60s, a growing number are now pushing these plans back.
Finder research found 18 per cent of people aged over 43 had either delayed retirement or re-entered the workforce in the past two years. That’s up from 16 per cent when the comparison site did the survey last year.
Finder superannuation expert Alison Banney told Yahoo Finance that achieving a comfortable retirement was getting harder and harder for some.
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“Cost of living pressures aren’t just squeezing younger people — they’re hitting older Aussies hard enough that some are delaying retirement or heading back to work,” Banney said.
“While a handful are jumping back in because they want something to do, the majority are just trying to stay afloat.”
Of the 536 people surveyed, 11 per cent said they had delayed retiring or had come out of retirement to ease the cost-of-living pressures.
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Another 4 per cent said they headed back to work to combat boredom, while just 1 per cent said it was for an emergency, such as to support a family member.
It comes after KPMG research found the number of men working into their 70s had increased from one in 10 to one in four in the last 20 years.
The expected retirement age for men has increased by 2.2 years to age 67 since 2014-15, while for women it has increased by 1.1 years to 65.3.
KPMG urban economist Terry Rawnsley said increases to age pension eligibility had contributed to the shift upwards.
Other older Aussies are happy to stay in the workforce beyond retirement age, with white-collar workers now able to work longer, and work from home, helping professionals to “semi-retire”.
There are retirement benchmarks that can provide a helpful guideline.
The Association of Superannuation Funds of Australia (ASFA) found singles typically need around $595,000 in superannuation to enjoy a comfortable retirement, while couples require about $690,000.
Super Consumers Australia found a single homeowner would need around $322,000 for a comfortable retirement, while homeowner couples would need a combined $432,000.
The latest ATO figures showed those entering retirement aged 65 to 69 had an average balance of $420,934. For males, the average balance was higher at $448,518, while for females it was $392,274.
Banney encouraged Aussies to review their super now.
“Check you’re with a super fund that has low fees and a history of strong long-term performance,” she told Yahoo Finance.
“It’s also crucial you’ve only got one fund in your name, so you’re not losing thousands of dollars to multiple sets of fees.”
If you’re able to make contributions to your nest egg, this can also add up over time.
Banney encouraged people not to “set and forget” their super and to keep an eye on performance and how it stacks up regularly.
“It’s a good idea to review your fund every year to see how it stacks up against others, and whether its investment strategy still matches where you’re at in life,” she said.
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