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COVID leads to shift in retirement plans for one in four Australians

I'm approaching retirement | | 2 min read

COVID and retirement

As life slowly begins to return to normal after COVID, we’re seeing new work and retirement patterns emerge as a result of Australians’ shifting priorities. One of these patterns has been dubbed ‘The Great Retirement’ – a trend where people close to retirement are choosing to leave the workforce earlier than they originally planned.

According to recent research commissioned by Catholic Super, which surveyed more than 2,000 Australians across all states and territories, one in four people (25%) have reconsidered their retirement plans as a result of COVID.

The results revealed that 14.5% of people are planning to bring their retirement date forward. However, a further 10.5% of people are instead delaying retirement to make up for lost income or super savings during the pandemic. Half of the people who intend to delay their retirement are planning to work for another 4-5 years.

Supporting employees with retirement pathways

For business leaders and HR professionals, designing retirement pathways with these changes in mind may help to deliver better workforce planning and retirement outcomes.

Retirement uncertainty is a concern for many Australians. Almost one in three (30%) don’t believe they’ll be able to control when and how they start winding down to retirement, such as reducing their work hours or going part-time.

One of the ways to address this uncertainty is by educating your employees about transition-to-retirement (TTR) strategies using their super. It enables older Australians to spend more time with family or have more leisure time, rather than fully retiring straight away. Allowing employees to reduce their workload to two or three days per week also helps businesses retain valuable team members and experience for longer, while your employee can still maintain their original income by using their super to supplement their salary. This, in turn, creates the opportunity for mentoring and training succession plans – resulting in smooth transitions of knowledge and responsibility to younger employees within your business, and a more efficient changeover for all.

Authorised by Togethr Trustees Pty Ltd (ABN 64 006 964 049; AFSL 246383) ('Trustee') the trustee of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Catholic Super is a division of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Financial advice services may be provided to members by the trustee's related entity. 

Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). The information contained herein is general information only. It has been prepared without taking into account your personal investment objectives, financial situation, or needs. It is not intended to be, and should not be, construed in any way as investment, legal or financial advice. Please consider your personal position, objectives, and requirements before taking any action. Past performance is not a reliable indicator of future performance.

© 2020 Togethr Trustees Pty Ltd. For further information please our contact our Service Centre on 1300 655 002 or visit our website: csf.com.au.

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