Page 5 - Wealth-Adviser-Issue-122 (FWP)

ISSUE 122
OCTOBER 2025

permanent leisure—is now the exception, not the rule. better fits changing energy levels and personal circumstanc-
Throughout Australia, there is growing recognition that es. The age gap between full-time work and leaving the
continuing to work, mentor, or volunteer can provide sig- workforce altogether is widening, and this phased approach
nificant psychological and social benefits. People often find is increasingly viewed as the “new retirement.”
that when the financial rewards of work are stripped away, Older Australians are also more likely to be paying off
what remains is the sense of purpose, the rhythm to life, mortgages or renting in retirement—a stark departure from
and the affirmation of identity that work provides. Staying past generations, where home ownership was nearly univer-
curious, engaged, and purposeful counteracts the risks of sal among retirees. Economic pressures, rising living costs,
isolation and rapid cognitive decline sometimes associated and housing accessibility all make continued participation
with abrupt retirement. in the workforce not just desirable, but sometimes neces-
Advisers have begun to champion the concept of a “port- sary. Intergenerational factors add further complexity, with
folio life”—a purposeful mix of paid work, unpaid projects, families negotiating how to balance care, housing needs,
lifelong learning, caregiving, and leisure. Such an approach and financial legacies.
enables older Australians to redefine their identity on their
own terms, pursuing activities that align with personal Financial Resilience: Strategies for Security
values and goals. In this context, planning for retirement Across Extended Working Lives
becomes about more than accumulating assets—it’s about Given these realities, financial resilience has become
crafting a strategy that integrates passion and contribution. a central plank of retirement planning. No longer can
Research consistently shows that those who embrace this Australians assume a defined, comfortable post-work
broader mindset report higher levels of satisfaction, better phase—each transition requires new skills, clear strategies,
health outcomes, and greater overall wellbeing. Australian and proactive engagement with advice.
and international scholars echo the sentiment: work and Compulsory superannuation remains a strength of the
intellectual activity can and should continue for as long as it Australian system. The median super balance at retirement
brings joy and value, not simply until an arbitrary number is has jumped over the past decade, with parity between men
reached. and women slowly improving. As super matures, more
retirees will have received consistent contributions over
Ageism and Opportunity: Barriers and Pathways their whole working life, helping ensure basic income needs
in the Modern Workplace are met.
Despite changing attitudes and structures, barriers Yet there remains a stark divide between expectations
remain. Ageism is a persistent issue in Australian workplac- and reality. Younger Australians consistently overestimate
es, with many older Australians reporting difficulty securing how much annual income will be needed in retirement—
employment, advancing in current roles, or being taken many expect over $100,000 per year, far outpacing what
seriously when seeking new opportunities. Discrimination today’s retirees actually spend. This optimism reflects both
can manifest subtly—through hiring practices or perceptions rising living standards and the impact of recent cost-of-liv-
around adaptability and energy—or overtly in diminished ing shocks, but it also risks disappointment if expectations
training and advancement opportunities. are not managed with up-to-date information and careful
Personal stories shared by retirees highlight how ageism planning.
can stifle career ambitions, creativity, and financial inde- Inflation and cost pressures have eroded comfortable
pendence. Skilled professionals—sometimes with decades of living standards for many retirees, fostering uncertainty and
credible expertise—are overlooked for roles or assignments, sometimes a lack of confidence about whether “enough” is
and even a modern CV or energetic appearance cannot truly enough. As a result, Australians are engaging more pro-
always counter perceptions tied to age. Women, in particu- actively: checking super balances, recalibrating investments,
lar, face unique challenges: despite gains in super balances, and seeking professional advice in record numbers. Those
their average retirement age has traditionally lagged behind who receive advice are demonstrably better off, feeling
men, and many continue to balance paid work with family more prepared, more likely to retire on their own terms, and
responsibilities well into their sixties and seventies. better able to weather financial shocks.
At the same time, some positive developments are Strategies for resilience often include:
emerging. Industry and government campaigns are pro- • Embracing a phased retirement or semi-retirement to
moting the benefits of mature-age workers. Flexible work supplement income while supporting lifestyle needs and
environments, especially work-from-home arrangements, family.
have become invaluable, allowing older Australians to • Consider moving to a smaller home or choosing a living
“semi-retire” and stay engaged at a pace and schedule that arrangement that costs less, especially if you still have a

5