The reasons ‘unretirement’ rate continues to grow

Retirement is meant to be permanent, but many people are changing their minds.

The reasons ‘unretirement’ rate continues to grow

Retirement is meant to be permanent, but many people end up changing their minds about leaving the workforce, according to the latest data from the Australian Bureau of Statistics.

ABS workforce figures from 2016-2017 reveal that 177,500 Australians, aged 45 years and older, who had previously hung up their work clothes for good have either already returned to work or were planning to do so.

The stats say that nearly half (42 per cent) of these people were going back to work for financial reasons, while 32 per cent stated they were simply “bored and needed something to do”.

Just under 19 per cent of people said they returned to the workforce because an interesting opportunity came up, around 10 per cent said they returned because an employer or business asked them back and another 10 per cent returned because their health had improved.

With women currently experiencing a 42 per cent gender pay gap in retirement savings, it is perhaps not that surprising that women lead the way when it comes to ‘unretiring’, accounting for 108,200 of the total number of people who returned to work.


Women were also more likely to return to work because of a financial need, 47 per cent compared to just 34 per cent of men.

Men were more likely than women to abandon their retirement due to boredom or a need to find something to do, 48 per cent compared to 25.5 per cent.

Women, though, were also much more likely to return to the workforce because of a turnaround in their health situation than men, 13.5 per cent compared to just 3.3 per cent of men.

With the Work Bonus set for an increase on 1 July, the number of people who might be tempted to come out of retirement could increase further.

The Pension Work Bonus will be expanded from 1 July 2019, with $300 per fortnight to be excluded from the income test instead of $250. And, for the first time, it will be extended to include earnings from self-employment.

A pensioner will be able to earn $7800 per year through self-employment without an impact on his or her Age Pension. This is in addition to the income-free area, which is currently $300 a fortnight (combined) for a pensioner couple.

Have you ever considered coming out of retirement? Have you ‘unretired’? What was the major reason for re-entering the workforce?

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    COMMENTS

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    jackie
    13th Jun 2019
    11:17am
    I won't be going back to work. I plan to enjoy my life what little time there is.

    The retirement age should be 60 not till you drop.

    Those that are bored can do volunteer work instead of ruining it for future generations.

    All our politicians retire young, their pensions and perks are a burden to taxpayers. We should not have to work till we drop to pay for their luxury retirements.
    johnp
    13th Jun 2019
    11:38am
    AGREE 100% jackie
    KSS
    13th Jun 2019
    12:52pm
    jackie all politicians can no longer claim their pensions early. They have to wait until pension age just like everyone else. The rules around this were changed some years ago and so all new politicans have been subjected to the new rules since then.
    jackie
    13th Jun 2019
    12:54pm
    KSS, politicians pensions are not means tested and are a lot more than the rest of what Australians get.
    KSS
    13th Jun 2019
    1:29pm
    Neither are the pensions of many thousand other workers who pay into a private pension fund. Politicians do not get, nor would they be eligible for the age pension. You simple cannot compare apples and oranges.

    BTW you do know that they contrubute about 15% of their own salaries into their fund don't you?

    You are going to make yourself ill with all this unfettered venum you have jackie.
    Triss
    13th Jun 2019
    2:45pm
    I totally agree with you, Jackie.
    Triss
    13th Jun 2019
    2:50pm
    I think you’re wrong, KSS, politicians get their pensions at 55 they don’t have to wait until 67 like the rest of us.
    Triss
    13th Jun 2019
    2:57pm
    Being annoyed at the way politicians have given themselves permission to line their pockets to to the detriment of taxpayers is not ‘unfettered venom’, KSS.
    Triss
    13th Jun 2019
    3:31pm
    Just as an aside, do the two retired politicians - Keneally and Latham - who have been re-elected get their full pensions on top of their parliamentary salaries?
    GeorgeM
    13th Jun 2019
    8:57pm
    Politicians first elected prior to 2004 have reaped, and continue to reap, massive (50-75% of Base Salary) undeserved pensions for life with NO tests for Income, Assets or Couple Combined tests. Cases of Abbott (over $300K), B.Bishop and P.Ruddick (over 250K), also many others over $200K (Macklin, Swan. J.Bishop), etc, etc, etc - make you want to vomit! This scheme should have been cancelled on re-election from 2004 onwards, as they were new contracts, however no one seems to have challenged it's continuation after 2004 for these parasites who got re-elected.
    Politicians also get these massive defined benefits from Age 55, gradually increasing to 60 - criminal bastards who increased the pension age for others to 67, but could not stomach later than 60 for themselves.
    Politicians since 2004 (thanks to Latham's arm twisting, Howard changed this) have 15.4% Superannuation - paid by TAXPAYERS, not by themselves. Before anyone says their super / pensions are "just like for everyone else", I would like to see an official link which spells out what they are entitled to - I believe it is well hidden from the public. In any case, everyone else gets around 9% (not 15.4%) which is also OUT OF THEIR PACKAGE, not on top of it.
    Charlie
    13th Jun 2019
    12:09pm
    Of course there are other activities in retirement..Its just about finding a new balance that suits declining physical and mental performance. This varies from person to person.
    jackie
    13th Jun 2019
    12:58pm
    Charlie, I agree it's just that some get stuck on the money and possessions treadmill.
    Cowboy Jim
    13th Jun 2019
    2:52pm
    jackie - have friends who are counting pennies, nickels and dimes just to leave a sizable packet to the off spring, so I would say that is part of your "possessions treadmill"?
    older&wiser
    13th Jun 2019
    3:57pm
    Cowboy Jim - cannot understand people doing this - utterly stupid. So they live in poverty and struggle just so as to leave an inheritance? No way.... They will have enough.
    I earned what I have - I will spend it, and do with it, what I want. What ever is left over - they can have. But I won't go to any lengths to give them more.
    Eddy
    13th Jun 2019
    9:17pm
    Cowboy does 'pennies, nickels and dimes, indicate your friends are resident of the USA. I could understand if you used the old slang terms for pence, thrippence, sixpence and shillings (that is coppers, trey bits, zacks and deeners) but I am unfamiliar with any slang terms for our new decimal coins. Apart from that comment I can agree with the thrust of your post.
    Eddy
    13th Jun 2019
    9:21pm
    ps Cowboy please do not take umbrage at my last comment, one of my major aversions is the Americanisation of our language and culture. Cheers
    Cowboy Jim
    14th Jun 2019
    8:55am
    Eddy - I did spend some time in the USA, alas I do not remember using your terms for money, came here in 1970 and the dollars and cents were in then. With TV Americanisms seem to be unavoidable, if we produced more of our own programming we could keep more of our language.
    Ted Wards
    13th Jun 2019
    1:26pm
    Next week Im retraining to become a lifestyle planner. I intend to work with those who are looking at retirement and work with them to plan what they want to do with their time. Its suchan important thing to do other than the finances of course.
    Cowboy Jim
    13th Jun 2019
    2:49pm
    All good if you have someone who wants to give you a job. So good luck to those who are lucky. jackie is right about the retiring age should be at 60 but then she comes across as Labor voter and Rudd made us work to 67 (both sexes). That said you can always retire at 60 without C/L payments access and in that I agree with her wholeheartedly but not many of us have that luxury.
    GeorgeM
    13th Jun 2019
    9:01pm
    That's right, I haven't heard of anyone offering jobs ever to get people out of retirement!
    Also, for $300 per fortnight, who would want to work? With my skills I could have earned that in a couple of hours or less! There should be NO Income or Assets Test and let people earn and save as much as they want to without penalising them - just like for politicians.
    Mum
    13th Jun 2019
    5:28pm
    I retired in 2010, from primary teaching. Went back to work, part-time and casual, working every year since except 2016 (health issues). Currently working 2-3 days per week, enjoy it, like the social aspects, don't need the money but it's great to have, they keep asking so I keep going. i'm 72.