Retirement at 60 redundant
Australians must continue to work longer and workplaces must foster an environment that makes it more enjoyable to work longer to deal with longevity challenges, the Commonwealth Bank said.
General manager, retirement, Nicolette Rubinsztein, told a media briefing yesterday it was vital to ask older workers what would drive them to remain longer in the workforce in order to maintain the health of the retirement market, which is set to grow by $1 trillion over the next ten years.
Rubinsztein, along with the Financial Services Council chief executive, Sally Loane, released the ‘FSC-CBA Older Workers Report', which surveyed 500 people across Australia between 50 and 75 years on their attitudes to continuing work, and the barriers to working.
"What you see here actually is the number one reason that they've given, that would encourage them to work longer is actually flexibility," she said.
The survey also showed 49 per cent felt there were no barriers to continue work past 50, while 13 per cent said they had faced age discrimination, down from 28 per cent in 2012, a result Loane was pleased about.
"I think we can probably thank attitudes from both older workers and also from employers because I think employers have realised that to discriminate against people who are getting into their 50s is economically just not feasible," Loane said.
"It costs a lot to re-train people. And if they're put out to pasture too early then it's just a zero sum game."
The survey showed 71 per cent had no concerns about remaining in the workforce, while 72 per cent were eager to keep working regardless of their financial situation.
Meanwhile, 38 per cent continued work for financial security, 23 per cent kept working as they had not accumulated enough money to retire, while 15 per cent kept working for enjoyment.
But the survey said 27 per cent of respondents over 50 found it difficult to find a new job after being made redundant, while 16 per cent found it quite difficult.
"Although age discrimination is dropping significantly, it's still difficult if you have to transition," Loane said.
AUTHOR
Malavika Santhebennur
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
