Post by Banjo on Sept 18, 2011 22:38:01 GMT 7
Over-65s too broke to retire
OLDER workers are being forced to stay in their jobs past 65 because they don't have enough money saved for their retirement.
The workforce participation rate for these Australians has almost doubled in the past decade from 5.9 per cent to 10.8 per cent, and the number of older workers has risen from 142,000 to 334,000, according to the Bureau of Statistics.
With super funds taking a battering due to share market fluctuations, longer life expectancies and incentives to keep working longer, an extra 92,000 Australians have opted to remain in the workforce past 65 since August 2007.
Figures show that at the height of the global financial crisis, super funds were losing an average 12.9 per cent. That had turned around in 2010 to show gains of 9.8 per cent.
"There's no doubt that as a result of the GFC and the impact that had on retirement savings, many workers may have had to postpone retirement or maybe move into part-time employment as a result," said Salvador Saiz, from superannuation research company SuperRatings.
Financial adviser Stuart Barry said that longer life expect ancies and changes that allow people to access part of their super while working part time or claim a full aged pension while working casually had added to the trend.
Sydney has the highest participation rate for older workers at 11.7 per cent, up from 5.6 per cent a decade ago.
"I have clients coming in and say with all this uncertainty out there, should I be working longer?" Mr Barry said.
"It is not just about the lower returns we have had in recent years, but also it has given people a sense of uncertainty about how long their money will actually last."
Eureka Financial Group's Greg Cook said the super losses during the GFC were a factor along with more flexible work options.
"If markets had continued like they were pre-GFC a lot of people would be spending more time and money on lifestyle pursuits rather than mixing it up with either full-time or part-time work," he said.
"The thing I talk about to clients is you hear people saying I was 57, I could have retired and then the global financial crisis hit and now I have to work for five years but in some respects the boom before the GFC was artificial."
Robert Curley from the Australia Independent Retirees Association said the trend back to work was in part because a 35 to 40 year retirement was now unsustainable for many and others also wanted the stimulation of work.
"For those that have gone back, I think there are two issues. There is a needs basis for many. They are saying that their lifestyle is going to be eroded and they have still got the ability to work," he said.
"The problem is a lot of people are realising at a reasonably young age that they think at first retirement is going to be wonderful, they travel and suddenly realise the money is not going to last."
A spokesman for Treasurer Wayne Swan said that from July those receiving the aged pension can earn up to $250 a fortnight without losing their welfare benefit.
www.adelaidenow.com.au/money/over-65s-too-broke-to-retire/story-e6fredkc-1226140374817
OLDER workers are being forced to stay in their jobs past 65 because they don't have enough money saved for their retirement.
The workforce participation rate for these Australians has almost doubled in the past decade from 5.9 per cent to 10.8 per cent, and the number of older workers has risen from 142,000 to 334,000, according to the Bureau of Statistics.
With super funds taking a battering due to share market fluctuations, longer life expectancies and incentives to keep working longer, an extra 92,000 Australians have opted to remain in the workforce past 65 since August 2007.
Figures show that at the height of the global financial crisis, super funds were losing an average 12.9 per cent. That had turned around in 2010 to show gains of 9.8 per cent.
"There's no doubt that as a result of the GFC and the impact that had on retirement savings, many workers may have had to postpone retirement or maybe move into part-time employment as a result," said Salvador Saiz, from superannuation research company SuperRatings.
Financial adviser Stuart Barry said that longer life expect ancies and changes that allow people to access part of their super while working part time or claim a full aged pension while working casually had added to the trend.
Sydney has the highest participation rate for older workers at 11.7 per cent, up from 5.6 per cent a decade ago.
"I have clients coming in and say with all this uncertainty out there, should I be working longer?" Mr Barry said.
"It is not just about the lower returns we have had in recent years, but also it has given people a sense of uncertainty about how long their money will actually last."
Eureka Financial Group's Greg Cook said the super losses during the GFC were a factor along with more flexible work options.
"If markets had continued like they were pre-GFC a lot of people would be spending more time and money on lifestyle pursuits rather than mixing it up with either full-time or part-time work," he said.
"The thing I talk about to clients is you hear people saying I was 57, I could have retired and then the global financial crisis hit and now I have to work for five years but in some respects the boom before the GFC was artificial."
Robert Curley from the Australia Independent Retirees Association said the trend back to work was in part because a 35 to 40 year retirement was now unsustainable for many and others also wanted the stimulation of work.
"For those that have gone back, I think there are two issues. There is a needs basis for many. They are saying that their lifestyle is going to be eroded and they have still got the ability to work," he said.
"The problem is a lot of people are realising at a reasonably young age that they think at first retirement is going to be wonderful, they travel and suddenly realise the money is not going to last."
A spokesman for Treasurer Wayne Swan said that from July those receiving the aged pension can earn up to $250 a fortnight without losing their welfare benefit.
www.adelaidenow.com.au/money/over-65s-too-broke-to-retire/story-e6fredkc-1226140374817