March 16, 2018
The average age at which Australians intend to retire has been rising over the past decade, from 57.5 years in 2008 to 61.9 years in 2017.
The figures come from new research by Roy Morgan, which also show that in the past decade the 6.9 year difference that once existed between female and male retirement ages has almost disappeared.
However, despite this increase in the average age of retirees, their number continues to increase and is currently 415,000, up from 392,000 in 2014 and 326,000 in 2008.
The increasing retirement age is not only good for individuals by increasing their savings but also a positive for the Australian Government and superannuation funds, Roy Morgan says.
“Currently, the Australian Government faces twin financial pressures on funding the age pension, from an increase in life expectancy and inadequate personal retirement savings,” Roy Morgan’s Industry Communications Director Norman Morris said.
“Given this situation, it is a positive finding in this research that there has been a gradual increase in the age of intending retirees.
“This results potentially in a longer period of paying tax, increased savings and as a result less time on the pension, possibly at a reduced level.”
However, Mr Morris warned that one drawback of delayed retirement is that it may increase unemployment, with older workers occupying positions younger people might otherwise have filled.
“The more rapid increase in the age of females intending to retire compared to males over recent years is also a positive trend,” Mr Morris said.
“This has now reached the stage where the intended age of retirement is almost identical for both sexes, enabling greater savings potential for females heading into retirement.”
The Roy Morgan data was put together from an extensive survey of more than 50,000 interviews per annum between 2008 and 2017, including more than 500 intending retirees.
