Australia: Enjoying some part-time retirement

Retirement in Australia no longer means stopping work forever for many people. Instead working part time has become an attractive option.

Right now, a new group of ‘un-retireds’ is emerging – people who retire from full-time employment early and then later go back to part-time or seasonal work. And this group is growing steadily.

In Australia, the average age for retiring males is 58. However, 16 per cent of men aged 45 and over who have previously retired are working part time or looking for part- time employment¹.

According to the Australian Bureau of Statistics, there appears to be an increased tendency for some men, particularly those aged between 60 and 64, to ease into retirement though a period of part-time employment².

This pattern is likely to continue, with men aged 45 to 54 saying that they intend to retire before 55 but plan to work part time after retirement³.

“However, in order to achieve this goal, a sound financial plan will have had to be followed over a medium to long time frame,” comments Shaun Williams, General Manager Group Product Distribution for Norwich Union.

“By building your wealth during your full time working years you give yourself dignity and choices when it comes to enjoying the benefits of your work.”

A study conducted by Norwich Union in the UK has uncovered similar results to Australia.

In the UK more than one in five of retired people aged over 50 have gone back to some form of employment, with the figure as high as 34 per cent in the 65 to 74 age bracket. Of those who haven’t gone back to work, 22 per cent are considering doing so⁴.

“For years, people have been concerned about ensuring that they have enough money for a long and healthy retirement. It now seems that people aren’t always looking to stop contributing and enjoy the challenges that being part of the work place has to offer. And by choosing to work with a good financial planner they are making good life choices.”

The UK survey noted that only four per cent of the people who returned to work did so because they needed money. The majority commented that they wanted to work to ensure they kept active and they enjoyed interaction with fellow workers⁵.

“Employment during retirement seems to work very well for a lot of people. So long as they have made good plans for their future, part time work can be very attractive. It also allows people to top-up their superannuation should it be below expectations, at a time in their life when their mortgage is behind them and their children financially independent,” said Shaun.

People looking to work part time but still continue to enhance their financial situation should contact an Independent Financial Adviser.

¹Australian Bureau of Statistics, Rate of Retirement remains steady since 1986, July 1998.
²Australian Bureau of Statistics, Work – Not in the Labour Force: Early retirement among men, 1994.
³Australian Bureau of Statistics, Work – Not in the Labour Force: Retirement and retirement intentions, 2000.
⁴Taylor Nelson Sofres, Retired people nation wide – UK, October 2002.
⁵Taylor Nelson Sofres, Retired people nation wide – UK, October 2002.

For further information, please contact:

Simon Morgan
Group General Manager Public Affairs
(03) 9829 8892
0407 966 632

Note to editors:

• Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the funds management arm, is aligned with Morley Funds UK. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
• Globally, Norwich Union Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
• Aviva’s principal business activities are long-term savings, funds management and general insurance. It has a market capitalisation of approximately A$34.4 billion at 13/01/03, worldwide premium and investment sales of more than A$76.6 billion from ongoing business and more than A$556 billion in assets under management. The group has 64,000 employees and more than 25 million customers.
• The securities advice or information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.