How to unleash your ‘second half’ for richer and happier senior years

New research has found that a career change in your 40s, 50s or 60s can deliver financial gains as well as emotional benefits.

Middle-aged Australians are blowing the whistle on half time of their lives and looking for more fulfilling and financially-rewarding careers.

New research by investment giant Colonial First State has found more than one third of Aussies aged 45 to 65 are considering changing careers in the next few years, with many willing to work past the traditional retirement age of 65.

Its modelling found a 50-year old with $150,000 in super and an average $91,000 wage would retire with $360,000 at 65 if they took the traditional path, and their nest egg would deplete to $253,000 by age 75.

But if they “recharged” their career by retraining for two years, lifting their wage to $106,000 and working to age 75, their super balance at 75 would be more than $555,000.

Colonial First State Superannuation’s chief executive officer, Kelly Power, says more than 10 per cent of people surveyed are already taking steps towards a new line of work.

Colonial First State Superannuation’s Kelly Power says people are viewing retirement differently.

“People are beginning to view retirement differently, which could see a huge number of Australians – potentially a million more – working longer and into their 70s,” she says.

“We know people want to do more of what makes them really happy, and for some this includes considering a change in career to improve their work-life balance, earn more money or do something they are more passionate about.”

Power says Australians can bring their “second-half” dreams to life by:

• Having a conversation with family and loved ones about life goals.

• Exploring their ideas with people they trust or someone who made a similar change.

• Considering getting professional financial advice and making a plan.

• Understand rules and incentives around the age pension and Seniors and Pensioners Tax Offset.

Power says more people are seeing retirement as an active period involving some part-time work and “getting a financial benefit that will help them live better as they live longer”.

Financial strategist Theo Marinis says he is noticing more people considering a different direction, while some who previously retired early are re-entering work part-time as baristas, lawnmowers or other roles.

Marinis says many people have unfulfilled desires, and he quotes the late John Lennon’s song lyrics: “life is what happens to you while you’re busy making other plans”.

“All of a sudden, you realise ‘when did I turn 55?’,” he says.

“Let’s not die wondering.”