The proportion of Australians intending to retire beyond age 65 is increasing rapidly.
According to a research note just released by the Australian Bureau of Statistics (ABS), a survey conducted in 2015 showed 71% of people said they intended to retire at the age of 65 years over, up from 66% in the previous corresponding survey conducted in 2013 which in turn was up from 48% in 2005.
The proportion of people who intend working up to age 70 is up four-fold.
“The survey found that 23% of people aged 45 years and over are intending to retire at the age of 70 years or over compared with only 8% in 2004-05” said Jennifer Humphrys from the ABS.
The average intended retirement age is 65 years; 66 years for men and 65 years for women notes the ABS.
The majority of Australians intend to retire between 65-69 years, but the results show that now over a quarter of males 45 years and over plan to work past 70 years.
The survey commenced a few months after the government last year announced changes to the current qualification age for the Age Pension, said the ABS.
For those in the labour force who intended to retire, the most common factors influencing their decision were ‘financial security’ (40% for men and 35% for women) and ‘personal health or physical abilities’ (23% for both men and women).
In encouraging news for the superannuation sector, just over half (53%) reported their main expected source of personal income at retirement as ‘superannuation/annuity/allocated pension’.
“While 47% of people aged 45 years and over who had retired reported a ‘government pension or allowance’ as their main source of income at retirement, only 27% of people aged 45 years and over who were intending to retire indicated that this would be their main expected source of income at retirement”
The survey also highlighted the importance of partner’s income as one of the main expected source of funds for meeting living costs at retirement.
[via the Financial Standard]