An increasing number of “ageless workers” are choosing to extend their careers well into their 70s, reshaping the nation’s workforce and providing employers with a new pool of labor. According to research by KPMG released on Thursday, the proportion of 70-year-old men in paid employment has surged from one in ten in 2004 to one in four today. Approximately 10% of men in their late 70s remain active in the workforce.
Since the 2014-15 period, the expected retirement age for men has risen by 2.2 years to 67, while for women, it has increased by 1.1 years to 65.3. The age pension access age was incrementally raised from 65 to 67 between 2017 and 2023, yet many individuals choose to continue working past the official retirement age.
Changing Perceptions of Retirement
According to KPMG urban economist Terry Rawnsley, the increase in the age pension access age has influenced some, but many have voluntarily decided to extend their working years. “The growth in ageless workers isn’t a recent phenomenon that spiked following the cost-of-living pressures of 2023-24. It is a longer-term trend that suggests a structural change to the concept of retirement,” Rawnsley explained.
Men are more likely than women to continue working into their 70s. The participation rate among women in their 70s has climbed from 5% in 2014-15 to 9%, while for men, it has increased from 11% to 14%. Rawnsley attributes part of this shift to changes in the nature of work, noting that it’s easier to continue working with a laptop at 70 than on a construction site.
Historical Context and Policy Shifts
The idea of extending the working age isn’t entirely new. A proposal by the Abbott government to raise the retirement age to 70 was shelved after Scott Morrison became prime minister, partly due to concerns it would compel older men, especially those in manual labor, to return to work. The pandemic further influenced retirement plans, with many people delaying retirement to fulfill postponed travel plans once restrictions lifted.
Rawnsley noted, “These ageless workers have since returned from travel and rejoined the workforce, which also explains a rise in the participation rate for older Australians.”
The Impact of Remote Work
The pandemic also accelerated the shift towards remote work, allowing many older Australians in professional roles to “semi-retire” by working part-time from home. Rawnsley highlighted that this flexibility has enabled older workers to supplement their retirement savings and maintain a more comfortable lifestyle, even supporting their families.
“The adoption of working from home has made many older Australians in professional jobs realise they can ‘semi-retire’ and continue dabbling in the workforce part-time,” he said. “Many people now have the luxury of semi-retirement where they can do part-time flexible work that can supplement retirement savings, supporting a more comfortable lifestyle and even supporting their children and grandchildren.”
However, the trend towards remote work has faced resistance from some employers who prefer staff to return to the office, which could impact older Australians who wish to remain in the workforce.
Looking Ahead
The rise of ageless workers represents a significant shift in societal norms around retirement and work. As more individuals choose to remain in the workforce longer, this trend could influence future policy decisions and reshape the labor market. Employers may need to adapt to accommodate the needs of older workers, such as offering more flexible work arrangements.
As the concept of retirement continues to evolve, the workforce may see more individuals balancing work and leisure well into their later years, redefining what it means to retire in the modern age.
