Election 2022: Age pensioners itching for a job

One in five age pensioners would consider a return to paid work, a new survey reveals, but seniors’ advocates say the pension rules don’t make it financially worthwhile.

National Seniors chief executive John McCallum.

One in five people on the Age Pension would consider getting a job after retirement, new ­research reveals.

And 16 per cent already have, the survey of 4000 older Australians undertaken by advocacy group National Seniors shows.

With just over 2.5 million Australians receiving the Age Pension, the survey results suggest 500,000 older workers could be available to fill the nation’s skills gaps.

Releasing a bigger grey army into the workforce could be a boon for an economy crying out for workers, National Seniors chief executive John McCallum said, but this was being stymied by laws limiting the number of hours older Australians could work before losing some or all of their pension.

“Growing this pool of workers can provide a big shot in the arm for the economy,” Professor McCallum said. “Many seniors are struggling to make ends meet on the pension, but the pension rules are a strong disincentive to do paid work. This traps pensioners at low quality of life, including too many in poverty.”

The survey canvassed the views of almost 4000 older Australians, including 1250 age pensioners. Six in 10 of those pensioners who had either returned to paid work or were considering it said their main reason was money. Other significant reasons were staying active (15 per cent), contributing to ­society (12 per cent) and socialising (11 per cent).

National Seniors is calling on political parties to exempt ­income from the Age Pension means test, which would allow older Australians to keep the pension and the proceeds of their work, subject to normal tax ­arrangements.

An age pensioner who earns more than $480 a fortnight starts to lose their pension in a graded system.

“Times have changed. No longer do we work until we’re 60 and die at 70 of a heart attack,” Professor McCallum said. “We live in a world where we’re likely to live until 90 and can work until 75. At the moment the settings are out of kilter with reality.”

He said significant sectors of the economy were crying out for workers, including agriculture and aged and disability care, and many older workers fitted the bill.