The number of Australian’s who say they will delay their retirement until at least the age of 70 has almost doubled since 2006 as a result of the global financial crisis (GFC), according to Mercer research.
Nearly half of the 519 working Australians aged 40-65 surveyed said they would delay their retirement as a result of reduced retirement savings, with this figure increasing to 60 per cent for those aged over 60.
Meanwhile, almost 20 per cent said the GFC could see them continue to work for an extra six years, while 33 per cent may work up to an additional four years.
The extent of the delay surprised Mercer Asia Pacific’s outsourcing business leader, David Anderson.
“It indicates not just the impact of the GFC on retirement savings but potentially inadequate and most probably very late planning to begin with.”
However, the survey showed younger workers to be more optimistic about the impact of the GFC, with 33 per cent of those aged 40-49 predicting a delayed retirement, nearly half the number of those aged over 60.
The survey also highlighted a discrepancy between desired and expected retirement age. The average age most of the workers surveyed want to retire at is 58, while almost 90 per cent did not expect to retire until at least 60.
The discrepancy has implications for employers, super funds and individuals, according to Mercer.
Anderson said “it is clear individuals need to better understand how they can improve and protect their retirement savings … but for employers, delayed retirement across the board may bring other challenges, such as the need to adjust their workplace practices for older workers”.
Anderson said superannuation funds have a responsibility to help educate workers on the importance of contributing more — and earlier — to super.
