Aging Australians Unprepared for Extended Retirement

By: ce | 14 Jul 2015


According to the Randstad Workmonitor report, nearly half of Australians expect children born today to live past 100. Yet Steve Shepherd, Randstad’s employment market analyst, told Pro Bono News that most Australians are yet to realise the financial impact longer life expectancies will have on our retirement plans.

The pension age in Australia currently stands at 65 but it’s expected to hit 70 by 2035, so it’s unsurprising that 63 percent of Australians think they’ll retire in their mid- to late-60s. However, in reality, Mr Shepherd says many Australians are working longer than the current retirement age to ensure their financial independence.

Some money experts claim Australians must save up to 40 percent of their current income to enjoy a comfortable retirement, but Mr Shepherd says that nearly seven out of 10 Aussies are unwilling to save more than 10 percent of their income.

“It’s important Australians start saving as soon as possible for retirement, especially older generations,” he insists. “If we do not properly plan for our retirement now, we will be relying on the substantially smaller pool of younger generations to prop us up through support services like the aged pension which will have dire economic implications.”

The Randstad Workmonitor report also highlighted that just 44 percent of local employers have active workplace policies to attract employees over 55. This comes despite experts insisting that the experience of mature employees benefits businesses.

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