Australians expect to work longer: GESB

Only a quarter of Australians expect to retire by the age of 60, according to a survey commissioned by West Australian super provider GESB.

Australians aged over 45 were almost twice as likely as those aged 18-24 to expect to retire by the age of 60, while younger Australians were twice as likely to expect to continue working past 60 despite being financially ready.

Tasmanians were most likely to expect to retire by the age of 60 at 54 per cent, while NSW residents at 45 per cent were the least likely.

One-third of all respondents expected to have to work past 60 due to not being financially prepared to retire.

“GESB’s research reveals a shift in expectations. Australians may dream about early retirement, but they are increasingly realistic about their ability to achieve it,” said GESB head of wealth management Fabian Ross.

The rise in life expectancies during the past century meant that building adequate savings to retire by the age of 65 had become an even more demanding proposition, he said.

“Super providers need to help educate Australians to be realistic about how far the 9 per cent employer contribution will go towards achieving their retirement savings target and provide them with easier access to information about contribution and investment strategies that suit their individual journeys to and lifestyles during retirement,” Ross said.