Lack of superannuation and need to support kids are stopping Australians from retiring

Many lifestyle factors are stopping a hidden generation of Australians from retiring. See how much wealth you can build using our savings calculator.

Exclusive: More Australians are delaying their retirement plans and heading back to work, because they have run out of superannuation, need to support their kids or are bored.

In a new report, demographer Bernard Salt, has revealed what he calls a shift in the nation’s workforce, with more people aged over 55 opting to work “longer but lighter”.

The old model of 50-something empty nesters continuing to give their all to taxing jobs after waving goodbye to their children has been re-imagined, he said.

Instead, more Australian pre-retirees are choosing to stay in the workplace for longer in order to stay active and ease their financial burdens in increasingly costly times during what Mr Salt has dubbed “The Lifestyle Years”.

The report, conducted by Amazon Australia in partnership with The Demographics Group,

drew upon a range of demographic, social and cultural indicators sourced from the Australian Bureau of Statistics.

Demographer Bernard Salt has detected a new generation of Australians who are working longer. Picture: Tim Carrafa

Widely regarded as one of Australia’s leading social commentators, Mr Salt said the findings, which showed more older Australians were blending work with lifestyle as a consequence of longer life expectancy, marked “new territory”.

“It’s almost like we’re discovering there’s a whole new continent that exists just beyond the age of 55 to 69,” he said.

“And what we do with those years, I think, is dramatically changing. And now we’re blurring and blending work with lifestyle, with retirement in those years.”

Older Australians who were not ready to pull the pin on working life felt a sense of empowerment when they took on roles of their choosing that aligned with their lifestyles, such as casual work.

“We’ve seen it make such a difference to many individuals around their quality of life, how they feel about themselves, feeling valued,” he said.

With 2.7 million Australian over the age of 55 in the workforce, Mr Salt said society has “moved on” from the concept of the empty nest syndrome, where parents can feel bereft after their children leave the family home.

Financial planner Jenny Brown, CEO and founder of JBS Financial Strategists, said there numerous financial benefits for pre-retirees who decided to work for longer.

“By continuing to work longer, it will save drawing down on your super, for another 5 to 10 years, allowing for compound interest to take effect,” she said.

Chris Brycki, founder and CEO of Stockspot, said almost a quarter of his investors aged over 59 were investing for their children.

“They could be helping their kids and grandkids by providing financial assistance, passing on their wealth, or to help them offset the costs of buying property,” he said.

“Some might even be helping to pay the school fees of their grandchildren.”

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‘IT GIVES YOU THAT EXTRA SUPPORT’

It’s a long way from the classroom, but former primary school teacher Lynda Blake could not be happier sorting packages in Amazon’s Brisbane logistics centre in Pinkenba.

Feeling exhausted after a long career in teaching, Ms Blake, 60, from Redcliffe, wanted a change of pace but was not ready for full-time retirement.

“I just thought, I still have so much to offer,” she said.

“And I just didn’t feel like I was ready to completely retire.”

Her search for a job that was less stressful and that would allow her more time to enjoy the things she loves led her to her role at Amazon.

Former teacher Lynda Blake, of Redcliffe, has delayed retirement and works at the Amazon warehouse in Brisbane's Pinkenba. Picture: Supplied

“I love the flexibility and that I’m not working every single day,” she said. “I take extra shifts when it suits me, but I make sure I always have the time to do the things I enjoy.”

Her enthusiasm for her job is palpable and the benefits are numerous.

“I think it’s very important to stay mentally and physically fit,” she said.

“So you engage with people of different ages ... it helps to keep you very stimulated in your thinking, not to become stagnated.”

The money earned comes in handy too, with her first grandson due, and her architect husband

Philip building their dream retirement home in the Noosa hinterland.

“It just gives you that extra financial support coming in as well when you’re working, rather than entirely relying on your superannuation.”

Neil said his previous work had taken a physical toll on his body but he was keen to get back in the workforce. Picture: Supplied

‘I CAN PICK AND CHOOSE MY HOURS’

Former removalist Neil Hughes has taken a job as an Amazon Flex delivery partner after searching for a side hustle that could lift his retirement income and boost his holiday budget.

His previous work had taken a physical toll on his body but he was keen to get back in the workforce after becoming “pretty bored” with early retirement.

Mr Hughes, 63, has an extensive knowledge of Sydney’s streets and roads and says this job is the perfect fit.

He works in three to four-hour blocs delivering packages to the homes of online shoppers.

“I can pick and choose the hours I work and if I need to prioritise the important things in life, I can,” he said.

The Carlingford resident said he enjoyed interacting with co-workers and being his own boss. “It's’s a pretty cool job to have,” he said.

HOW TO GROW YOUR WEALTH BEFORE RETIREMENT

1. Plan early: By putting funds away, workers can help ensure that they are not left short. It’s never too early, whether you are in your 30s. 40s, 50s or later.

2. Contribute to your super: Doing extra salary sacrifice will help. Check if you are able to put in more into superannuation and each time you get a pay rise, make sure you contribute some of it now to plan for retirement.

3. Track your spending: Work because you want to, not because you have to. Ensuring you understand where your money is invested, and how much you are spending as a household, will help.

4. Seek advice: Unfortunately people can run into trouble when they don’t ask for advice or they spend too much money thinking that retirement will be a long way off. Often people who run their own business have said “my business is my retirement”. However, things can happen to businesses and they are not always as safe as putting money away into investments, super or property.

Source: Financial Planner Jenny Brown of JBS Financial Strategists

Originally published as Lack of superannuation and need to support kids are stopping Australians from retiring