Retirement can wait

Almost one million Australians over 55 have no intention of retiring, according to a new survey by The Nielsen Company.

Another 350,000 did not intend to retire for at least another five years.

The combined total of 55-year-olds with no immediate retirement plans is up considerably on the previous year’s survey, which found 780,000 Australians planned to keep working.

The Nielsen 2007 Retirement Intentions Report annually surveys older Australians on their working intentions.

Nielsen Media client service director Simone Bryant said Australians aged 55 plus with no short-term plans for retirement represented a new generation of older workers — “the un-retired”.

“Not that long ago, 55 was the unofficial retirement age for Australians — sometimes by choice, but more often because employers were quick to discard older workers,” she said.

“Our new research shows a remarkable turnaround, as today, most workers aged between 55 and 64 have no plans for retirement in the next five years.”

The strong economy meant many older workers were able to retain their jobs due to labour shortages and they were taking advantage of the opportunity to boost their savings.

“It would appear that the ‘un-retired’ are gladly accepting the chance to add to their savings in preparation for when they do eventually quit the workforce,” Bryant said

The survey also found superannuation was becoming a significant component of people’s source of retirement income, despite most workers of 55 plus not contributing for very long to compulsory superannuation.

In the latest survey, those questioned regarded superannuation as the most important source of retirement income compared to the age pension, which was always the favourite in previous surveys.

Among those aged 60 to 64 years with plans to retire, 61 per cent cited superannuation as a main source of income in retirement, compared to 52 per cent who will rely on the age pension.