In a significant shift, Australians are expected to remain in the workforce longer, with both the rising cost of living and an increase in white-collar jobs contributing to this trend. New data from the Australian Bureau of Statistics reveals a marked increase in the average retirement age for both men and women, suggesting that the nation’s workforce is evolving in response to economic pressures and changing job structures.
The shift towards later retirement is particularly noticeable among those in white-collar roles, as flexible work arrangements continue to make extended careers more manageable. This change has far-reaching implications for the economy, government policies, and individual health.
Rising Cost of Living and the Workforce’s Shift to Longer Careers
The surge in the cost of living has had a direct impact on Australians’ decisions to stay in work for longer. According to the latest data, Australian men now expect to work until the age of 67, while women are projected to work until 65, an increase from previous years. The rising costs of housing, healthcare, and daily expenses mean that many individuals are not financially prepared to retire at the traditional age.
Economist Terry Rawnsley explained that, in recent years, many Australians have found it easier to work well into their late 70s, particularly in white-collar roles. “These are accountants, engineers, lawyers — more of these people are working for longer whereas, in the past, we had more blue-collar workers,” he said, noting that such professions are less physically demanding, making extended careers more feasible.
The White-Collar Shift: Flexible Work Options and Extended Careers
Another key factor behind this trend is the changing composition of the workforce. As white-collar jobs grow in number, more Australians are able to remain employed longer, particularly due to the rise of remote work.
According to Rawnsley, professions such as accounting, engineering, and law are seeing more individuals staying in the workforce beyond the typical retirement age. This shift is particularly evident post-COVID, when more individuals in white-collar roles have embraced flexible work schedules. The ability to work part-time or from home has enabled many older Australians to balance work with personal life, keeping them in the workforce longer while maintaining their health and wellbeing.
The implications of this trend are profound. Not only does it mean Australians are contributing to the economy for longer, but it also reduces their reliance on government pension schemes. Moreover, Rawnsley notes that research suggests continued work can improve health outcomes, as it keeps individuals mentally and physically active—saving costs on healthcare in the long run.
