Later-life work on the rise as Australians delay retirement: survey

MELBOURNE, Sept. 19 (Xinhua) -- Australians are delaying retirement, with one in three in their late 60s still working due to financial pressures and policy shifts.

The latest annual Household, Income and Labor Dynamics in Australia Survey, released Friday, found the share of people aged 65-69 still in the workforce has risen to 34 percent from 14 percent in 2003.

In 2003, 70 percent of women and nearly half of men aged 60-64 had retired; 20 years later, that fell to 41 percent and 27 percent, showed the survey which has tracked the same households since 2001.

"The decision to retire is no longer driven purely by personal preference or age alone. It's increasingly shaped by policy, housing wealth, super (superannuation) balances and whether someone can afford to stop working," said Kyle Peyton, senior research fellow from Australia's University of Melbourne.

According to the survey funded by the Australian government and managed by the Melbourne Institute of Applied Economic and Social Research, the trend reflects a broader transformation in retirement patterns: people are retiring later in life.

The pension eligibility age has risen from 65 to 67 since 2003, while better health, and higher workforce participation among women have also pushed more people to delay leaving work. But health problems remain the most common reason for early retirement, it said.

Superannuation balances at retirement are growing, narrowing the gender gap, but inequality persists. In 2023, men retired with a median balance of 310,000 Australian dollars (204,772 U.S. dollars) compared to 191,000 Australian dollars (126,166 U.S. dollars) for women, the survey said.

"Australia's retirement system was built on the assumption that most people would own their homes by the time they retire," Peyton said.

However, over recent decades, public policy in Australia has prioritized boosting housing demand while neglecting supply, driving prices up and worsening intergenerational wealth inequality, he said.

"Superannuation alone will not be enough to support the growing number of younger Australians locked out of homeownership," Peyton said, adding housing plays a central role in shaping economic wellbeing in later life. Enditem