Two out of five employees expect to work till the age of 70 or older, according to a recent survey.
The 2015/16 Global Benefits Attitudes Survey, released by Willis Towers Watson, found Australians are increasing expecting to not be able to retire before the age of 70.
The survey also found it is the “less healthy, less engaged, and less productive employees in the workforce who expect to retire later”.
Willis Towers Watson senior consultant David McNeice pointed to “significant” financial stresses on Australian employees, both short and long-term. Inadequate retirement incomes is also a “major factor”.
“In Australia in 1993, 8% of the population aged over 65 were in employment. Today, that rate has increased to 17%,” he said.
“The number of current employees planning to retire later continues to increase, driven by fears of inadequate retirement savings. There are clear warning signs of a potential problem of hidden pensioners being employed, unable to retire and yet much less productive in the workplace.”
Australia also ranked highest among developed nations for the proportion of employees who believe they will still be working at age 70.
Additionally, Australians have a more negative outlook on the future compared to other countries, according to the survey. 70% of Australian workers believe that government benefits will continue to reduce, compared to 65% globally. 70% think they’ll be worse off in retirement compared to their parents’ generation, compared to 66% globally.
52% of Australian workers said that retirement security has become a bigger issue for them over the last two years.