ASFA research reveals a “patchwork” approach to retirement

New research from the Association of Super Funds of Australia (ASFA) has found more Australians are inclined to continue working past retirement age for both social or financial reasons.

A survey of 1,500 Australian adults found the number of people expecting to stop working completely rose from just over 20 per cent of those aged 18 to 34 to over 30 per cent for those aged over 65 years. Similarly, the number of people who intended to continue working in part-time or casual roles past retirement age for the purposes of social engagement or keeping occupied also dropped when considering the youngest generations polled (just under 40 per cent) compared to those over the age of 65 (approximately 25 per cent).

The survey also indicated a jump in the number of people expecting to have to continue working past retirement age due to financial necessity; approximately 18 per cent for both 18-to-34-year-olds and 35-to-49-year olds responded, dropping to around 11 per cent for 50-to-64-year olds before rising back up again to approximately 15 per cent for those aged 65 and over.

“This research shows us the days of working to customary retirement age and then putting your feet up are long gone,” ASFA CEO, Mary Delahunty, said.

“The rules around superannuation need to change to reflect this. Currently, Australians who’ve hit preservation age can’t draw down on their super, and top up the same account. Being forced to have two or more accounts – one account to take money from and one to put money into – doesn’t make sense with our modern, fluid approaches to retirement.”

The data also suggested that as people got closer to retirement age the number of people who expressed concerns about not being able to retire rose, from approximately eight per cent of 18-to-34-year-olds to around 14 per cent of those aged 65 and over.

“This research demonstrates yet again the clear need for Australians to have low- or no-cost financial advice as they transition retirement,” Delahunty said.

“Having your options clearly laid out by a financial advisor from your super fund, as the Quality of Advice Review Final Report recommends, could only benefit the hundreds of thousands of Australians deciding how best to manage their finances at this important time.

“Our research shows beyond question that advice reform is vital to ensuring Australia’s super system remains a global leader. We’re committed to continuing to work closely with Government and the sector to see these changes come to life without delay.”