Retiree workforce now a reality due to social, financial reasons

New research from UniSuper has confirmed attitudes towards a ‘restful and relaxing’ retirement have pivoted, with more Australians open to continue working to allay financial concerns or keep up social connections.

The super fund’s first ‘Retire with Purpose’ report derived its results from a survey of just over 2,000 adult Australians aged from 35 to 75 years old, finding 61 per cent of respondents currently part of the workforce were concerned about losing their social ties when they entire retirement and 29 per cent planned to continue working or delay their retirement to maintain those ties.

Over 80 per cent of respondents who had not yet entered retirement said they plan to keep working in whatever shape or form – including a new paid job, volunteer work or a flexible/hybrid position – to maintain a sense of purpose at the same time as enjoying the freedoms of retirement.

The survey also indicating a generational difference in attitudes towards retirement, with Millennials (84 per cent) and Generation X (77 per cent) expecting to continue in the workforce once they reach retirement age. The research found “financial considerations” was one of the top reasons for continuing to work for 71 per cent of respondents, with 56 per cent also indicating “maintaining a sense of purpose” and 28 per cent for “staying socially engaged” as other key reasons.

“Retirement is one of life’s most significant milestones and it’s natural for people to worry about losing their sense of connection, identity and purpose when they leave full-time work and their career,” Peter Chun, UniSuper CEO, said.

“What is inspiring is that rather than retreating, many Australians are reimagining retirement not as an end, but as the start of a new chapter filled with meaning, growth and fresh opportunity.

“Australians are seeking meaningful ways to stay connected and they’re doing it on their own terms. Whether it’s part-time work, volunteering or creative pursuits, the path to purpose in retirement is deeply personal. This is a powerful reminder that one-size-fits-all solutions no longer serve today’s retirees.

“As superannuation funds, we have a responsibility to help our members create superannuation strategies that are hyper-personalised and designed to support their diverse goals, lifestyles and aspirations.”

The research also highlighted the growing trend of a lack of confidence or preparedness for retirement among working Australians, with 45 per cent of survey respondents not feeling prepared, 48 per cent unsure of how much money they will need to fund their retirement, and 68 per cent concerned they will outlive their retirement savings.

According to UniSuper, the report also confirmed the crucial part financial advice plays in cementing confidence in retirement. Over 66 per cent of respondents who had engaged a financial advice reported feeling confident about the how much money they will need in retirement and 80 per cent expect to retire as planned.

“This research reinforces what we’ve long believed at UniSuper – quality advice is the single most powerful tool we have to empower the next generation of retirees and help them achieve better outcomes with confidence and clarity,” UniSuper General Manager of Financial Advice and Education, Andrew Gregory, said.

“The confidence gap between those who have received financial advice and those who haven’t speaks volumes about the power of guidance. At UniSuper, 66 per cent of members starting a retirement income stream have already tapped into our advice services, and 80 per cent of our retirees have leaned on support to retire with greater clarity, confidence and peace of mind.”