Approaching Retirement – Australian Demographics in focus

You are not alone!

In fact, if you were born between 1946 and 1964, you are one of 5.17 million people in Australia or 22% of the population. So, in 2019 that makes you somewhere in age between 55 and 73 and you will either almost certainly have left the workforce or are seeing that event on the horizon.

On average, in Australia, people leave the workforce at 62.9 years of age but that point can span anywhere from early 50’s to late 70’s like some of our “Living Legends” (Ita Buttrose comes to mind) who are still in the workforce with very senior positions. I should say that working into your late 70’s is not the exclusive domain of well-known personalities but it probably helps. Generally, men leave the workforce a little later than the average at 63.6 years and women a little earlier at 62.1 years. Interestingly, though, 30% of people over 65 are still working in some capacity.

Let me know your experience. What age did you leave the workforce? Was it voluntary or involuntary? Was it a good experience or could it have been handled better? Email me at peter@yourtransitiontoretirement.com.au

3,500 are leaving the workforce each week

You are certainly not alone; in 2019 around 3,500 people are leaving the workforce for good each week in Australia and this will continue to increase to around 4,100 people per week before levelling off for a few decades.

Whilst most people will be familiar with the various generation groupings comparing them based on numbers can be deceiving as the years bracketed by the generations vary. Look at the numbers below:

  • 1946 to 1964: Baby Boomers (18 years)
  • 1965 to 1976: Generation X (11 years)
  • 1977 to 1995: Gen Y (18 years)
  • 1996 to present: Gen Z (23 years)

So analysing the population pyramid of Australia in 2019 shows what the real picture is as it shows the percentage of the population by 5 year groupings called “cohorts”. So if you are 60 – 64 you can see there are more people following you in the 55-59 cohorts and so on.

Australia’s Population Pyramid 2019
Source: https://www.populationpyramid.net

Interestingly, Glenn Capuano from .id-the population experts, pointed out that whilst the Baby Boomers generation exists in all western countries, the UK and the US experienced a big increase in the birth rate straight after the Second World War but in Australia it was a far more gradual build-up over a 15 year period from a birth rate of 2.74 in 1946 to 3.55 in 1961. Currently it is around 1.97. For more information go to the ABS publication “Historical Population Statistics” (3105.0). https://blog.id.com.au/2012/population/…/who-are-the-baby-boomers/

Are you thinking about leaving the workforce?

If you are thinking about voluntarily leaving full-time work, make sure you have a robust psychological plan in place that will guide and mentally sustain you in the years ahead, give you a strong focus and, importantly, a greater confidence in the future.

On the other hand, if you have involuntarily left the workforce (and you are definitely not alone in this regard) and have lost direction and perhaps feeling a bit down and lacking purpose, making a plan is the kick-start you need to move forward, find a renewed confidence and purpose in life.

In either case, consider talking to Transition to Retirement about how we work with clients to build a Transition to Retirement (TTR) Plan.

“You are not alone” Thanks to En Lefko 87.7 https://enlefko.fm

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