Latest Financial Planning News
Hot Issues
Royal Commission report makes super fee recommendations
Four tips for boosting your super balance
New Year resolutions, New Year strategies
Part 4 - The major benefit of ‘behavioural coaching'
3 tips for weathering the market's bumpy ride
Common BDBN ‘pitfalls’ flagged in wake of ASIC action
Case law points to ‘growing importance’ of SMSF document chain
How Australia is performing.
Global outlook summary: Down but not out
Australia - a comprehensive run-down of our vital statistics.
Your guide to smarter holiday reading
Verifying asset values in a SMSF.
Admin, BDBN errors flagged for SMSFs this year
ATO targets non-arm's length income - NALI
Retiring in their 30s or 40s?
Ranking of the world's best: Taking it personally
The value of advice - Behavioural Coaching
Our Advent calendar for 2018
Compliance, tax advice in strongest demand from SMSFs
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Franking credit policy to dent retirement savings by 15 per cent
Information needed to be the BBQ expert.
Hungry for income? Choose carefully.
Retiree self-protection: A volatility-and-downturn 'bucket'
How financial advice helps create wealth.
Superannuation gender gap narrowing, research shows
Articles archive
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2016
Articles
Making investing a family affair
Super and divorce: a personal finance issue
Market Update - May 2016
ASIC flags SMSF investors in scam risk
Older, greyer and still working
Working and contributing to super past 65
The pitfalls of part-year pensions
Replenishing SMSF memberships
Budget will hit 15% of SMSFs
The insidious side of low interest rates
Market Update - April 2016
Budget 2016-17
Do investment principles stand test of time?
Estate Planning - early inheritance
US economy will bend, not break
A detailed look at the ATO’s new LRBA guidance
Defying life's blueprint
ATO continuing lodgement crackdown
Another twist on the gender savings gap
Market Update – March 2016
Going solo
Use our online budgeting tools to help plan your future.
Age Pension means-test prevents rational decision-making
Changing times for super collectables
Preservation Age Rule
Why investing for retirement isn't just about super
Older, greyer and still working

 

Increasing determination to keep working long past traditional and popular retirement ages.



       


While the median retirement age in Australia is around 61, many older Australians are showing a determination to keep working long past traditional and popular retirement ages.


A little delving into the spreadsheets for the March quarter Australian labour force report from the ABS unveils in detail a somewhat slow-moving change that has been taking place among older workers over the past three decades.


These statistics show that almost 13 per cent of the population aged 65 or over was either working or looking for work in March 2016 - up from a little more than 5 per cent in March 1986.


This gradual change would reflect such factors as greater longevity, medical advances and perhaps expanding employment opportunities for older workers. And, at least anecdotally, attitudes to retirement are shifting with more individuals reportedly favouring at least part-time work to full-time retirement.


And of course, there is the financial side of things. As Smart Investing regularly discusses, an extended working life provides more opportunity to save more for what will be a shorter, less-costly retirement.


Not surprisingly, older workers are showing a strong preference for working part-time. Of the 456,500 employed Australians aged 65 and over, 260,400 - or 57 per cent - are working part-time. Many would, not doubt, be easing themselves into retirement.


Now look consider the 55-64 age group. More than 66 per cent are either working or looking for work - up from 42 per cent in March 1986, three decades earlier.


Perhaps what is surprising about this age group is the high percentage favouring part-time work. Of the 1.8 million employed people in the 55-64 age group, almost a third are working part-time.


The popularity of part-time work in these age groups reflects an apparently growing recognition that there may be an alternative, depending upon the circumstances, to finishing full-time work on a Friday night and beginning full-time retirement on the following Monday.


A person's ability to work past popular retirement ages much depends, of course, on health, family circumstances and employment or self-employment opportunities.


To read more about working past traditional retirement ages, see Smart Investing April 6.


 


By Robin Bowerman
Smart Investing 
Principal & Head of Retail, Vanguard Investments Australia
28 April 2016 | Retirement and superannuation




16th-June-2016
 

Investorplan is an Authorised Representative of GWM Adviser Services Limited trading as MLC Financial Planning | ABN 28 056 426 932 | an Australian Financial Services Licensee with its Registered Office at 105-153 Miller Street North Sydney NSW 2060
email: ownyourfuture@investorplan.com.au
General Advice Warning | Terms & Conditions | Legal Statement | Privacy Policy |Site by PlannerWeb