As waves of baby-boomers now reaching what was once a popular retirement age, as well as the rapid ageing of the population, the topic of retirement intentions is getting a lot of attention.
The Government has further focused attention on this issue with its plan to progressively increase the age for pension eligibility from 65 to 67 over the next few years.
The age that an individual chooses to retire can have a significant influence on their retirement savings, and in turn, their standard of living throughout their retirement.
Undoubtedly, a shorter retirement is more affordable than a long one. Those who elect to remain in the workforce have the opportunity to save for longer, for what will be a shorter retirement.
Some people are not in the position to choose their own retirement age given such considerations such as their health and the availability of employment opportunities.
The Australian Bureau of Statistics (ABS) released a report stating that the average age of retirement of individuals who retired over the past five years was 61.5 years. However, the report also showed that of the 4.7 million in the labour forced aged over 45 almost a half intend to retire between 65 and 69
It is always a good idea to discuss retirement with a professional to discuss the impact of the intended retirement age on the ability to finance the desired standard of living in retirement.