A growing number of Australians are postponing their retirement as rising living costs and financial insecurity reshape retirement planning nationwide. Recent survey data from Equip Superannuation shows that cost‑of‑living pressures loom largest in workers’ minds, with 43 per cent identifying it as their biggest retirement concern, ahead of superannuation balances and healthcare affordability.

This anxiety over day‑to‑day expenses is forcing workers to extend their time in the labour force. According to the Australian Bureau of Statistics (ABS) latest Retirement and Retirement Intentions release, the average intended retirement age for Australians aged 45 and over has climbed to 65.6 years, up from 65.4 the previous year. Historically, retirees left the workforce much earlier, for example, average retirement ages in past decades hovered in the mid‑50s.

The ABS data also shows that the average age at which people actually retire has risen. In 2024‑25 the average age at retirement from full‑time work was 57.3 years, up from 56.9 years in 2022‑23. While this figure still reflects people leaving employment earlier than most intend to, the upward trend over time illustrates how financial factors are shifting retirement later.

Financial Pressures Driving the Shift

Several intersecting financial pressures are behind these changes:

• Elevated cost of living: Daily expenses including food, energy, housing and healthcare, have surged faster than incomes for many households. This squeeze increases the amount workers feel they need to save before retiring.
• Rising cost of retirement itself: According to the Association of Superannuation Funds of Australia (ASFA) Retirement Standard, the cost of a comfortable retirement now exceeds $76,500 per year for couples and over $54,000 for singles, reflecting pressure from higher prices in essentials and services.
• Inadequate super balances: While total superannuation assets continue to grow- topping more than $4 trillion nationally- average individual super balances remain modest, particularly for younger Australians and women. Many workers fear that what they’ve saved won’t support a comfortable retirement without working longer.
• Reliance on government support: ABS data confirms that a significant share of retirees still rely on the government pension as a main source of income, particularly women. This dependency underscores how super alone may not be enough to fund retirement lifestyles.

Workforce Participation Trends

Extended working lives are evident in labour force trends. Other research highlights that older Australians are increasingly part of the workforce: in 2025, 65% of people aged 50–66 remained employed in some capacity, up from previous years. This includes part‑time roles, self‑employment and phased retirement arrangements, reflecting both financial necessity and changing retirement norms.

What This Means for Policy and Workers

Delaying retirement can improve long‑term financial resilience, allowing workers more time to accumulate super and reduce pressure on government pensions. However, extended working life also raises equity issues. Not all workers can easily prolong their careers due to health, job type or age discrimination. For policymakers, these trends signal the need for broader measures that address retirement savings adequacy, cost‑of‑living pressures, and equitable access to secure employment later in life.

Ultimately, the picture emerging from the data is clear: for many Australians, retiring earlier is becoming increasingly unaffordable, and retirement is being pushed back as a result.

The post Australians Are Delaying Retirement as Cost of Living Pressures Bite appeared first on Small Business Connections.

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