The expected retirement age for men is now 67, while for women it is 65.3, KPMG analysis found. (Source: Getty) <\/p>\n
The Australian retirement age<\/a> is the highest it has been in decades, with thousands now working<\/a> well into their 70s. It\u2019s sparked a warning for Aussie workers<\/a> to put strategies in place now, or risk facing serious pressures when it comes time to exit the workforce<\/a>.<\/p>\n The expected retirement age<\/a> for men is now 67 years, fresh KPMG analysis found, while for women it has climbed to 65.3 years. More than a quarter of a million Aussies are working into their 70s<\/a>, with the share of 70-year-old men working jumping from one in 10 to one in four over the last 20 years.<\/p>\n Your Future Strategy managing director Gareth Croy told Yahoo Finance he was seeing the trend play out amongst his clients. While some clients are choosing to continue to work into their 70s<\/a> for the fulfillment it brings, others are working out of financial necessity.<\/p>\n RELATED<\/p>\n \u201cYou\u2019ve equally got people who have just not kept their eye on the ball in terms of what they need to retire and then engaged into it too late in the piece,\u201d Croy said.<\/p>\n \u201cThen there are of course people who have had some financial issues which have contributed to not getting to the financial position to retire<\/a>.\u201d<\/p>\n Rising property prices and cost of living increases<\/a> have also had an impact on people\u2019s retirement plans, with Croy noting moving \u201cgoal posts\u201d meant some people were now working longer to achieve their goals.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/p>\n KPMG found increases to age pension eligibility<\/a> over the past decade had contributed to the shift up in retirement age, with the age rising from 65 to 67.<\/p>\n But it found the long-term shift was being driven by a growing cohort of \u201cageless workers\u201d. These are older workers who are happy to stay in the workforce well beyond retirement age<\/a>.<\/p>\n \u201cThe growth in ageless workers isn\u2019t a recent phenomenon that spiked following the cost-of-living pressures<\/a> of 2023-24,\u201d KPMG urban economist Terry Rawnsley said.<\/p>\n \u201cIt is a longer-term trend that suggests a structural change to the concept of retirement.\u201d<\/p>\n The latest HILDA survey<\/a> found financial motivations, including super rules, pension eligibility and financial security, have played an increasingly important role in shaping retirement.<\/p>\n In 2003, only 12.7 per cent of recent retirees cited financial reasons as their main motivation for retiring.<\/p>\n Story Continues <\/p>\n This figure doubled in 2007 to 26.3 per cent and has subsequently declined somewhat to around 20 to 25 per cent.<\/p>\n If the idea of working into your 70s isn\u2019t something you are keen on, Croy said it was crucial to actively think about your retirement early on.<\/p>\n Croy said the earlier you consider your retirement strategy<\/a>, the less \u201cdramatic change\u201d you may need to make to achieve your goals.<\/p>\n \u201cIf you don\u2019t really consider retirement until you\u2019re 60 but you want to leave the workforce at 65, you\u2019re starting to put a lot of pressure on a pretty short timeframe,\u201d he said.<\/p>\n Croy said it was important to think about your goals and start putting a strategy in place. For example, that might be paying off your mortgage<\/a> before you retire.<\/p>\n It can be worth seeking professional advice on your investment portfolios and superannuation<\/a>, and understanding how it is invested and whether it suits your risk profile and life stage.<\/p>\n Croy gave the example of someone in a balanced portfolio who may experience underperformance when they potentially could have afforded to take on more risk.<\/p>\n \u201cThe challenge is that when they realise that their super balance is going to undershoot where they need to be to retire, they\u2019re then under pressure to take on more volatility at a time when they don\u2019t have the timeframe to invest for that longer term to allow if there was a downturn, the correction time,\u201d he said.<\/p>\n Figuring out how much money you need to retire will depend on your personal circumstances, including the lifestyle you want.<\/p>\n The Association of Superannuation Funds of Australia\u2019s Retirement Standard<\/a> estimates singles would need $53,289 a year for a comfortable retirement, while couples would need $75,319 a year.<\/p>\n This assumes they own their own home and receive a part age pension<\/a>.<\/p>\n Croy said it can be helpful to think about the income your household has now and your savings capacity.<\/p>\n \u201cIf you take the savings capacity off what your after-tax income is right now, that\u2019s how much you\u2019re spending on your current lifestyle,\u201d he said.<\/p>\n \u201cIf you want that lifestyle into retirement, that\u2019s the income you\u2019re going to need to generate.<\/p>\n “If you want to do more things like international travel that you\u2019re going to be able to do because you\u2019ve got the time because you\u2019re not working, you need to factor that into the budget too.\u201d<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Gareth Croy <\/p>\n