• Living in Australia
  • Your involvement
    this year
  • Some results from
    the Living in Australia study
  • Living in Australia
    in the news
  • What if I move?
  • Frequently asked questions
  • Meet the interviewers
  • Annual report and published research
  • Some useful links
  • Contact us
  •   Retirement intentions  

    All employed persons aged 45 years or older were asked about their plans for retirement. A summary of their responses is provided in the table below and is suggestive of relatively widespread preferences for retirement at what traditionally have been thought of as young ages.

    Approximately 34 per cent of all older employed men and 41 per cent of older employed women nominated a desire to retire (permanently) from the workforce by, or prior to, their 60th birthday. Furthermore, this estimate represents a bottom limit given about one in four workers in the age groups under consideration were unable to nominate a preferred age of retirement. It is true, however, that the most nominated retirement age remains the more conventional 61 to 65 year age range.

    Intended Retirement Age by Sex (%):
    Employed Persons Aged 45 Years or Older
    Table: Intended Retirement Age by Sex (%): 
Employed Persons Aged 45 Years or Older

    Perhaps more importantly, the types of workers who are intending retiring earliest (at or before 60 years of age) tend to be more highly paid, and presumably most highly skilled. This can be seen in the next table, which reports average current annual earnings by intended retirement age.

    Such findings are of potentially large significance given the widely held view that population ageing will require policy interventions to encourage people to extend their working lives beyond conventional retirement ages.

    Intended Retirement Age by Sex and
    Average Current Annual Earnings ($):
    Table: Intended Retirement Age by Sex and Average Current Annual Earnings

      Retirement plans  

    retired couple
    There is currently considerable discussion about how Australia will support its aging population.

    The Commonwealth Government has set a number of objectives relating to how people can be encouraged to plan for their retirement.

    In 2003, the Living in Australia study included questions on retirement for those aged 45 and over. Your answers to these questions provided valuable input into the understanding we have of the issues surrounding retirement.
    Some of the results from these questions are shown below.

    • Most people in our study aged 45 years and over, and still in the workforce, expected to be retired by age 65 (75%).
    • More said they would choose to retire earlier if they could afford to do so - 81% by age 65.
    • The large majority of people already retired reported receiving the Age Pension, and in most cases the full pension.
    • Relatively few (37%) aged 45 and over, and who were not yet retired, expected to rely on the pension as their main source of retirement income.
    • Almost 60% thought their retirement income would be sufficient to maintain their current standard of living. Another 10% thought it would be more than enough, leaving 34 % who believed they would be worse off.
      People in retirement  

    People who were already retired seemed satisfied with their situation. Most said they 'enjoyed being retired' and were 'well adjusted to the changes following retirement. Once retired, they did not feel that people respected them less than before.

    In terms of their financial situation, 52% said that they had about the same standard of living as when they were working, 21% saw themselves as better off, and 27% said they were worse off.

    Standard of living of retirees
    compared to when they were working

    Table: Standard of living of retirees compared to when they were working