More Australians are expecting to work beyond the age of 65 and close to a quarter of those already aged over 45 are intending to retire at age 70, according to the latest data from the Australian Bureau of Statistics (ABS).
And the ABS data suggests the Government’s desire to relieve pressure on the Age Pension by having more Australians funding their own retirements is beginning to gain traction, with fewer pre-retirees expecting to be reliant on the pension.
The ABS data, released this week, suggests Australians are coming to terms with the need to work longer with respondents being questioned just a few months after the Government announced changes to the current qualification age for the Age Pension.
The ABS data also reflects the degree to which financial planners have had to adjust the strategies they have developed for clients approaching retirement age.
The survey found that 71 per cent of people intended to retire at the age of 65 or over, up from 66 per cent two years’ earlier and up a startling 23 per cent from 2004-05.
According to the ABS analysis the most common factors influencing decisions around retirement age are “financial security” (40 per cent for men and 35 per cent for women) and “personal health or physical abilities” (23 per cent for both men and women).
The ABS data also tended to confirm that the days of the lump sum are over, with just over 53 per cent of respondents reporting that their main expected source of personal income in retirement would be superannuation, annuity or allocated income.
However, an ABS spokesperson, Jennifer Humphrys, said there were differences reported by those who had already retired and those who intended to retire with respect to their source of personal income in retirement.
“While 47 per cent of persons aged 45 and over who had retired reported a government pension or allowance as their main source of income at retirement, only 27 per cent of persons aged 45 and over who were intending to retire indicated this would be their main expected source of income,” she said.
