With nearly 30% of 50 to 64 year olds dependent on welfare, older workers are now being encouraged to stay in the workforce longer and concentrate on growing their retirement nest eggs.
With nearly 30% of 50 to 64 year olds dependent on welfare1, older workers are now being encouraged to stay in the workforce longer and concentrate on growing their retirement nest eggs.
Shaun Williams from Norwich Union Australia, says simply surviving on the pension isn’t how most people picture their retirement and calls on older workers to use any additional years in the work place to ensure their retirement is financially secure.
"I am urging all older workers to ensure they are making significant additional contributions to their superannuation or investment funds. Don’t become one of the many people relying on the Government to fund your retirement," said Shaun.
Right now, 83% of Australians over the age of 65 rely, to some degree at least, on the pension2.
In the past, older workers have been forced out of the workplace through redundancy and early retirement schemes, ending up in an early retirement they possibly weren’t prepared for, or as part of a generation of older unemployed people.
"It is never too early to start planning for your retirement to ensure you don’t become one of the many people who find themselves unprepared for retirement. Ill health or redundancy can happen at anytime. It’s important to be ready for any time off work – be it permanent retirement or a break in employment," said Shaun.
The single age pension currently provides about A$10,000 annually. Yet according to research, the majority of baby boomers believe they will need A$30,000 a year during retirement3 – quite a short-fall for most people.
In 1999, a survey of 500 employers by Drake Management Consulting showed that none would employ a person over 504. Now, four years later we are seeing the beginning of a change in attitude as major industries become aware of the affect of the ageing population on the Australian workforce.
This growing awareness is likely to mean a change in attitude to older workers by employers moving forward.
The combined effects of the ageing workforce and the decline of youth entering the labour market could mean that Australia is facing a workforce shortfall in 15 years5 - a far cry from today’s concerns over unemployment.
According to the Australian Chamber of Commerce and Industry, employers now need to ensure they have strategies in place to retain older workers with enhanced skills as well as attracting suitable younger employees6.
"Now this issue has been recognised, it is important that older workers make the most of the opportunity to continue working and adding to their retirement finances," said Shaun.
-ends-
Shaun Williams is available for interview.
For further information, please contact:
Simon Morgan, Group General Manager Public Affairs
(03) 9829 8892
0407 966 632
1Australian Chamber of Commerce and Industry, Review - Ageing workforce presents opportunities as well as challenges for employers, May 2003, Canberra, pg 2.
2Australian Chamber of Commerce and Industry, Review - Ageing workforce presents opportunities as well as challenges for employers, May 2003, Canberra, pg 6.
3The Association of Superannuation Funds of Australia Limited, An adequate Retirement Income, June 2001, Sydney.
4Council on the Ageing, Media Release – COTA brings Minister Vanstone up to speed on age discrimination, November 2002.
5Kevin Andrews, Federal Minister for Ageing, Media Release – Ageing committee tackles mature age employment, November 2002.
6Australian Chamber of Commerce and Industry, Media Release - Ageing workforce presents opportunities as well as challenges for employers, May 2003, Canberra.
Note to editors:
- Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company to Norwich Union. 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 is the worlds seventh-largest insurance group and the biggest in the UK. It is the leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$77.3bn, and more than A$593bn of assets under management (as at 31 December 2002). The group has more than 59,000 employees and 25 million customers worldwide.
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