While some people of working age are planning never to retire because they enjoy it too much. Others are delaying retirement for economic reasons.
Once upon a time, 55 years of age was the time to retire from a life at the grindstone, let the hair down and live a little. But as the world and it economies change, so do the ages of those that choose to retire. With more and more people feeling unsure about the future, it seems that many are choosing to work on and protect their income rather than sail off into the sunset.
Many workers now feel that 55 is far too young an age to retire from full time employment. With people living longer across the planet, more and more possible retirees find that they are still in debt from mortgage repayments and loans at 55. The national average for Australians retiring from work is now 61.4 years of age, with the number slowly increasing every annually.
A survey by the Australian Bureau of Statistics also shows that the next generation of retirees will be even older. Up to 13% of the 45 year olds recently surveyed claim to be planning never to retire, with many opening their own businesses to keep a steady stream of revenue coming in.
This just goes to show how societies mind-sets are changing away from yesteryear’s ideas of working idealisms. After all, if you retire at 60 years of age there’s a good possibility your nest egg could have to last you up to another 25 years. It’s no wonder people are planning on working beyond 55.
It is estimated that for every year worked beyond the age of 55, a person is extending their retirement fund by up to 3 years. This is due to the double benefit of not drawing on funds already accumulated, on top of their employer still paying their superannuation. Also, be sure to consolidate your superannuation into one fund. Many of us forget that we have accumulated money in different accounts over the years – accounts which we have forgotten about. Click here for find out how to find lost superannuation.
By adding voluntary contributions to the compulsory superannuation, a 55 year old will be able to enjoy a much more comfortable retirement in the future. People may also choose to downsize their family home to increase their retirement capital. After all, a 5-bedroom house is rather excessive if you use one of the bedrooms on a regular basis. Once the chicks have fled the nest, more and more couples are downsizing their accommodation to increase their nest egg.
There is also the fact that, well, some people actually LIKE their job! A lot of those that carry on working past retirement age do so to continue in their working life and enjoy the challenges that are brought by day to day employment.
The later you retire, the more you will have to spend when you do decide to put your feet up in the future. Plus with so many people leading such active lives into their later years, who’s to say that more and more possible retirees won’t continue to work into their golden years.