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Aussies building more superannuation by working longer

Aussies building more superannuation by working longer

The average age at which Australians intend to retire has increased by more than four years over the past decade, new research has found.

Roy Morgan Research surveys from December 2017 found that the average age of Australians intending to retire in the next 12 months was 61.9 years.

That was up from 61.0 years in 2016 and 57.5 years in 2008.

istock_79305201_small5One noticeable change in the past decade is that men and women are now planning to retire at roughly the same age.

In 2008, men expected to spend an extra 3.6 years in the workforce, but by 2017 that gap had closed to just 0.2 years.

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Roy Morgan’s industry communications director, Norman Morris, said the increase in the age at which Australians expected to retire was good news for the federal budget.

“Currently, the Australian government faces twin financial pressures on funding the age pension, from an increase in life expectancy and inadequate personal retirement savings,” he said.

“This results potentially in a longer period of paying tax, increased savings and, as a result, less time on the pension, possibly at a reduced level.”

Mr Morris also welcomed the big increase in the age at which women intend to retire.

“This has now reached the stage where the intended age of retirement is almost identical for both sexes, enabling greater savings potential for females heading into retirement,” he said.

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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