By Stephanie Holliday
LOOKING back on my childhood as an almost 35-year-old, I have fond memories of being picked up from school by my grandfather to spend an afternoon watching far too much television (namely The Bold and the Beautiful) and cooking dinner with my grandmother until my mum arrived after work to collect us.
My grandparents were retired, which allowed for such an arrangement. And while everyone’s retirement looks different, not necessarily filled with afternoons entertaining grandchildren, it was a common practise which is increasingly becoming a rarity.
In 1995, the average age of retirement was 60.2 years. In 2022, it was 66.5. From July 2023, those born after January 1 1957, will be 67 years old to be considered officially at retirement age. It’s not only that people are delaying retirement due to cost-of-living pressures, but there are also surprising figures around people over 55 re-entering the workforce too, on their own accord.
40 percent of the half a million people who entered the labour force over the three years to October were over the age of 55. That means that nationally, almost one in five of all workers, or 19.6 percent, are now aged over 55, up from just 11.4 percent two decades ago.
Currently, a pensioner can only earn up to $240 per week before they lose the pension by 50 cents in the dollar, equivalent to approximately only one full working day. It leaves people in the retirement age bracket with a conundrum. The retirement age is increasing, yet they are needing to work past it due to a multitude of reasons (namely inflation). Then they are penalised for wanting to work to supplement their pension.
There is a petition to call on the Federal Government to exempt employment income from the Age Pension income test, so pensioners with limited wealth can work without losing their pension and help meet critical labour force shortages. To sign the petition, please visit nationalseniors.com.au/advocacy/fairer-retirement-income-system/let-pensioners-work.
