Retiring Later, Saving More: The Shifting Landscape of Life After Work

Australians today are hanging up their work boots later than ever before, and it’s not just a flicker on the economic radar, it’s a generational shift with real consequences.

A new Household, Income and Labour Dynamics in Australia (HILDA) survey shows that between 2003 and 2023, the average retirement age jumped by about five years. Women’s retirement age rose from 58.8 to 63.6, and men’s from 59.9 to 64.8.

While there’s no official retirement age in Australia, it’s worth noting that you must be at least 67 to qualify for the age pension.

So, what’s behind this “significant shift”? It all comes down to the three big Rs:

• Resources
• Roofs
• Resilience

On the financial side, housing is proving to be the defining factor in retirement comfort. As Kyle Peyton, senior research fellow at the University of Melbourne and one of the report’s authors explained,

“For the majority of retirees, housing wealth — the largest contributor to household wealth in Australia — serves as a key financial safety net.”

But that safety net is fraying. In the past two decades, the share of retirees who own their homes outright has dropped from 75% to 66%, while those with a mortgage or who rent have increased.

With rents soaring, retirees without a home face burning through super much faster just to keep a roof overhead. That’s the risk.

But here’s the hopeful side: super balances are on the rise, with the gender divide beginning to close. Since 2015, women’s super balances have more than doubled, while men’s have grown by about 40%.

In 2023, the median super balance jumped to $383,217, a clear sign of progress that’s helping level a once-uneven playing field. This upward turn in savings means future retirees may enter this phase of life with greater financial resources than generations before.

Health also plays a positive role in this story. Better health outcomes are allowing Australians to keep working longer, not out of necessity alone, but also because many can. The percentage of retirees forced to leave work early due to health reasons dropped from 39% in 2003 to 29% in 2023.

Longer lives and better health make extending careers not only possible but, for some, enjoyable.

This matters because retirement is no longer a sharp “full stop” but a softer chapter break — shaped by financial security, housing status, and how well our bodies hold up. The challenge ahead is ensuring this shift doesn’t leave younger generations struggling in the long shadow of rising housing costs.

As Peyton warns, “This is a big problem for future generations… housing is really where it’s at.”

Want the full picture? Read the complete article from SBS News.