Australians working longer and retiring more gradually

Australians are working longer and retiring more gradually, which experts say is easing the pressure on the aged pension.

The average retirement age is the highest it has been since the early 1970s at 66.2 years old for men and 64.8 years old for women.

Melbourne is the city with the highest average retirement age for men at just below 67 years.

Perth has the highest average retirement age for women at 65-and-a-half years.

“The current age we’re seeing this year is the highest since the early 70s, so 50 years,” KPMG urban economist Terry Rawnsley said.

“It’s not like the old days where you’d hit 65 and they’d say, ‘Here’s your gold watch and see ya later’.

“It’s much more of a nuanced transition.

“We see in the data the number of hours people are working starts to drop off.

“We start to be able to transition from full-time work to part-time work.”

The retirement age is expected to continue to rising and in 20 years it is expected to be closer to 70 but with an increasing mix of work and enjoyment.