The majority of Australians are becoming more cautious with their spending.

Australians working into their 70s fuelled by the cost of living crisis

Many Australian workers are choosing to work into their 70s to combat financial pressures.
June 6, 2024

ONLY a quarter (26 per cent) of Australian workers plan to retire at 65, and many are planning to work longer in response to financial pressures, according to new research commissioned by leading fund Equip Super.

Those delaying their retirement are doing so by an average of six years, meaning many people are choosing to work until they are in their 70s.

Almost four in ten (39 per cent) listed the rising cost of living as the reason for this delay.

The research also found that 85 per cent of Australians are becoming more cautious about their spending.

Equip Super’s Paul Stocker highlighted the benefits of strategic financial planning in helping meet retirement goals.

“Coping with the escalating cost of living is a shared concern for many Australians. We understand the financial difficulties that people encounter while planning for retirement, and we sympathise with those who are delaying retirement. By adopting strategic planning efforts, we want to help Australians retire when they choose to, rather than when they are forced to.

“In times like these, it’s essential to have a solid financial plan in place, and managing your super is a crucial aspect of that plan,” Mr Stocker said.

Survey respondents were asked to list current top financial priorities, with covering living costs and growing savings as the top two, followed closely by mortgage repayments.

The results also showed that three-quarters of Australians see their super as an important part of securing their financial future.

Diane Benham (70), has chosen to delay her retirement.

“I started working at 15, and now at 70, I am still working 20 hours a week. While our financial situation is generally stable, there are things we’d like to do when we retire, like travel. Delaying retirement wasn’t always part of my plan, but with expenses rising, it’s slightly worrying to think about life without an income.

“We just don’t know what’s around the corner. Although we’re fortunate to own our home, there are ongoing maintenance costs, and everything from shopping to car expenses keeps increasing. Every time you go to the shops it seems to cost more money.”

Mr Stocker said anxiety about retirement savings was natural in challenging economic times but urged individuals to seek expert advice to plan for a successful next chapter of their lives.

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