‘More options than ever’ for older workers
Retiring at the age of 55 is no longer a reality for many Australians. Just as 40 is the new 30, continuing to work in some capacity after the age of 55 is the new retirement.
The Australian Bureau of Statistics says more than one-third of all people aged 55 and over (or 1.9 million people) were working in 2009-10, with the participation rate increasing strongly in the past decade. In the 55 years-and-over age bracket, 42 per cent of men are in work, compared with 27 per cent of women. But during the past 10 years, the participation rate for women has grown at a faster rate than for men.
Skills Minister Chris Evans says there needs to be a change in attitude. “We can’t afford the mentality that people retire at the age of 55 if they can’t afford to,” he says. “We need to look at how over-50s see themselves engaging in the workforce over the next 20 years of their life. This could perhaps be re-training older people to do something else.”
RaboDirect executive general manager Greg McAweeney says proper planning will ensure a stable financial transition into retirement. “As the first of this generation heads into retirement, some of the big issues are coming home hard,” he says.
“Almost 25 per cent of baby boomers have few savings.”
In particular, modified roles within their industry are needed for tradespeople whose work involves heavy lifting, climbing or working outdoors in the elements.
Flexible and part-time employment also is needed for mature-age workers to allow them to pursue their interests, such as travel, social or family activities, pre-retirement.
KPMG partner and demographer Bernard Salt says the average life expectancy of an Australian is 82 years and the most common retirement age is 58 years. In the 1930s, when the life expectancy was 63, people “dropped dead at work” before they could retire.
Salt says it may mean older Australians work two days a week, play golf one day a week, and spend the rest of their time at home or volunteering.
“We, as a society, can’t fund you to stop at 65. We need a new model. You can extend the working life by controlling the work you do from the age of 55 and older.”
He says it is easier for workers in the corporate world to scale back, but it is possible for workers in labour-intensive jobs to find ways to scale back.
Salt suggests keeping a foot in the workforce can help men, in particular, retain social networks, as many men define themselves through work.
National Centre for Vocational Education Research general manager Francesca Beddie warns employers against typecasting older workers. She says some are at the peak of their careers, while others are at risk of being pushed into early retirement.
“While some older workers can manage their transition into retirement, others are not in a position to choose when and how they move out of the workforce,” she says.
“We must also remember that not all older workers want to continue working.”
Allan Fahlbusch (pictured on the cover with Jordan Pickford and Damien O’Neill) started his plumbing apprenticeship 47 years ago. Following advice from his doctor to “get off the tools”, he responded to a call-out from the Construction Industry Training Board looking for mature-aged tradespeople interested in becoming training assessors.
“I use all my industry knowledge and pass it on to apprentices,” he says.
Similarly, Brian Armstrong, 70, started in the plumbing industry 55 years ago. For the past three years he has worked as plumbing training assessor for Training Prospects.
The facts:
The average age at which full-time workers move into part-time work is 60.
68% of 55 to 64 year olds work full-time
65% will go part-time before retirement
20% of retiring baby boomers haven’t paid off their mortgage
