Two thirds of older workers are satisfied they have sufficient funds put aside to retire, a significant increase from 2012 where satisfaction levels with retirement savings were below 50 per cent, according to the Financial Services Council (FSC) – Commonwealth Bank of Australia’s (CBA) Older Workers Report 2015.
The report also found close to three quarters (71 per cent) of older workers are optimistic about staying in the workforce.
23 per cent of respondents said the reason for continuing to work was they didn’t have enough money to retire. Another 38 per cent said their reason for staying was financial security/money, down from 58 per cent in 2014.
Nicolette Rubinsztein, general manager of retirement at Commonwealth Bank*, said a comfortable retirement is a priority for older workers. The majority of older workers preferred part-time work, with Rubinsztein adding the traditional 9-5 workforce with full-time retirement at 65 is breaking down.
“Australians’ attitudes towards retirement are changing. No longer is the road to retirement such a defined path,” Rubinsztein said.
She added: “Importantly, supporting older workers in the workforce is paramount to addressing our longevity challenges and maintaining the health of our retirement system.”
She cautioned that respondents in the report may have been overly optimistic as current research from the Association of Superannuation Funds of Australia, of whom Rubinsztein is a director, shows only 35 per cent of retirees have sufficient funds for a comfortable retirement.
Other key findings from the report include:
- One in three 60-64 year olds expect to work for another 5 years but only 10 per cent for another ten years
- 69 per cent of older workers have not applied for a job since turning 50
- Job satisfaction remains a key driver for 52 per cent of those who have not applied for a new job
- Females are more likely than males to not apply for a job once made redundant
- 61 per cent of older workers have been offered training/ up skilling services at the workplace and taken them up
- 55 per cent have a preference for working part time for their remaining working life
- 65 per cent are satisfied they have sufficient funds to put aside for retirement
To download a copy of the 2015 Older Workers Report click here.
*Rubinsztein’s title was updated and originally read “general manager of strategy at Colonial First State, CBA’s super fund”