The ageing of the Australian population is resulting in an increasing proportion of the workforce being comprised of mature age people as stated in this report by National Seniors Australia.
In the coming years, many of these older workers will cease employment and enter retirement – either fully or partially. The nature of how these older workers transition out of the workforce and plan for their retirement has significant economic and social implications for Australia.
Importantly, the Australian Government has stated that strengthening the labour force participation of older persons – through either full-time or part-time work – is a key strategy to better manage the implications of population ageing. Moreover, it is important to investigate the plans of this large cohort of “baby boomers” as their workforce transitions and retirement plans will likely differ from previous generations.
This cohort is expected to have a significantly longer postemployment life due to rising life expectancies, which poses a substantial challenge for financial planning to ensure the adequacy of retirement incomes. Further, the health and lifestyle of this cohort in retirement will have an influence on their wellbeing and on the demand for a range of services.