Working past retirement age: embracing a new chapter

In recent years, an increasing number of Australians are choosing to work beyond the traditional retirement age¹. This trend reflects a shift in how we view retirement, with many seeing it not as an end, but as a new beginning. Whether driven by financial necessity, a desire to stay active, or the pursuit of passion projects, working later in life offers numerous benefits and opportunities.  
 

The growing trend  

While there is no set retirement age in Australia, access to your superannuation savings kicks in at age 60, while eligibility for the age pension is currently 67. Statistics show a significant rise in the number of older Australians remaining in the workforce, with the labour force participation rate for people aged 65 and over more than doubling in the 20 years to 2021.¹ This trend is expected to continue as life expectancy increases and more people seek to maintain their standard of living.  
 

Considerations for working past retirement age  

Thinking of working past retirement age? There are many considerations depending on your personal situation – here are some of the more common things to consider:  

1.   Scaling back to part-time hours: One of the most common adjustments for those working past retirement age is transitioning to part-time work. This allows individuals to enjoy the benefits of continued employment, such as social interaction and a sense of purpose, while also having more time for leisure and family.  
2.   Changing careers to pursue a passion: Retirement can be an ideal time to explore new career paths or turn hobbies into income-generating activities. Many find fulfillment in starting a small business, consulting, or engaging in creative pursuits that they were unable to focus on during their primary careers.  
3.   Drawing down on superannuation: For those who have accumulated superannuation savings, drawing down on these funds while continuing to work can provide financial flexibility. This strategy can help manage living expenses without fully depleting retirement savings. It’s important to seek financial advice to understand the tax implications and ensure long-term financial security.  
4.   Maintaining health and wellbeing: Continuing to work can have positive effects on mental and physical health. Staying active, maintaining a routine, and engaging in meaningful activities can contribute to overall wellbeing. However, it’s crucial to balance work with self-care and ensure that the work environment is supportive and accommodating.  
 

Financial and social benefits  

Working past retirement age can offer several financial benefits, including continued income, delayed drawing on retirement savings, and potential increases in superannuation balances. Additionally, staying in the workforce can provide social benefits, such as maintaining social connections and staying mentally engaged.  

As more Australians choose to work beyond the traditional retirement age, it’s essential to consider the various options and strategies available. A financial adviser can help you work out the best strategy for your financial goals and circumstances. Whether scaling back hours, changing careers, or drawing on superannuation, the key is to find a balance that supports both financial security and personal fulfillment.  

Read more about planning for retirement on our Retirement insights hub. 

¹ Older Australians, Employment and work - Australian Institute of Health and Welfare (aihw.gov.au)