Aussie workers are delaying retirement

Economic uncertainty has Australians working an extra six years on average.

A survey by Equip Super has shown the impact of the continued cost-of-living crisis and the price of financial security. A group of over 2,000 Australians were surveyed, with many feeling the pressure: 43 per cent reported cost-of-living pressures as the main reason for delaying retirement, with insufficient super funds sitting at 25 per cent and healthcare affordability at 18 per cent.

With many making changes to account for these pressures, reactions have spanned both sides of the spectrum: 21 per cent of respondents have reduced super contributions in the last year, while another 10 per cent have increased them. So while some are easing the pressures of the now, others are increasing the likelihood of an eventual retirement.

For both parties, however, retirement is taking a back seat.

On these changes, Equip Super chief experience officer Carrie Norman remained hopeful, stating: “While the environment is challenging, there are still positive, practical steps people can take, from reviewing their investment mix to accessing financial advice or support to help them make informed decisions and feel more confident about the future.”

And this advice might be more relevant than ever, with the study revealing a growing engagement with financial future: 45 per cent of respondents claim to have reviewed their super or retirement plan in the last year. In addition, more than half of the respondents wanted additional support or guidance on these financial decisions.

Norman said: “That willingness to engage is encouraging.”

However, this is not a new issue. As reported in 2023, the financial wellbeing of older Australians has gone down over the years, and not only were they struggling to meet lifestyle expenses, but they also expected these challenges to persist: a belief that has held true almost three years later.

Clearly, accessible tools and early planning are the keys to safeguarding retirement, weathering the uncertain economic tides, and keeping feelings of anxiety and uncertainty at bay. On the range of adjustments people are making, Norman highlighted “the common theme is Australians are taking stock and making decisions that help them regain a sense of control and confidence in their retirement”.

She said: “Taking manageable actions, even small ones, can make a meaningful difference over time and help people stay confident and connected to their long-term retirement goals.”