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Why we retire five years later – and the ‘big problem’ for future generations
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Why we retire five years later – and the ‘big problem’ for future generations

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Australia “must become serious about tackling intergenerational inequality” If we want a fair pension system, an author of a report on long -term trends has said in the long term.
A “significant shift” in domestic wealth, super baldi and health results has recovered the age at which Australians can retire, according to Kyle Peyton, a senior researcher at the University of Melbourne.
Between 2003 and 2023, the average retirement age in Australia increased by five years, according to the household survey, income and labor dynamics 2025 in Australia (Hilda).

The report showed that the average pension age was not evenly spread over the genera. Among women it rose from 58.8 to 63.6 years old, while for men it went from 59.9 to 64.8 years.

In addition to more Australians who will retire later, financial and health pressure also make them less comfortable with retirement, according to the report.

Although several factors are behind these trends, household wealth was in the front and in the middle, Peyton said.

‘Housing is really where it is’

Housing richness remains the most important part of economic well -being among pensioners, Peyton said.
“For the majority of pensioners, housing of wealth – the largest contribution to domestic wealth in Australia – serves as an important financial safety net,” he wrote in the retirement chapter of the report.
Peyton outlined various trends that took place between 2003 and 2023, including that the share of pensioners owned their houses fell from 75 percent to 66 percent, and the share of those with a mortgage increased from 13 percent to 17 percent.

Peyton was mainly concerned about the share of pensioners in the rental rental that doubled between 2003 and 2023 – from 6 percent to 12 percent.

A bar chart that shows the share of pensioners in various housing schemes for the years 2003 and 2023. The data indicates a decrease in home ownership without a mortgage and an increase in pensioners with a mortgage and those who live in private rental properties.

Source: SBS News / Leon Wang

“That is a pretty important shift, because the pension system in Australia is built from the assumption that people will have a house when they retire,” he said.

“This is a big problem for future generations, and I think we should become serious in this country about tackling intergenerational inequality and housing is really true.”
Moreover, the housing of the house has a clear impact on someone’s super balance when retirement, said Peyton.
“You will burn a lot more of your super to keep a roof over your head if you don’t have that house, because alone Rent is really expensive in Australia“He said.

Super gender gap with signs of closure

However, Peyton said that, although it may look terrible in housing, there were some positive trends in Superannuation, with “a really important increase” in the size of super balance sheets while people retire.

The median super balance for women has increased by more than 100 percent since 2015, while it has increased by around 40 percent for men, he told SBS News.

“What that in fact means is that we see a closing of the gender gap when retirement [savings]”He said.
In 2015 it was super balance of the Australian Australian $ 245,122, while in 2023 it was $ 383,217, according to the Hilda report.

In the meantime it was for men $ 467,307 in 2015 and $ 504,420 in 2023.

Prognosis largely looks up

The report also suggests that improving the health results is another factor that Australians work longer.

The percentage of recent pensioners who called health as their main reason for leaving the workforce fell from 39 percent in 2003 to 29 percent in 2023.

This decrease of 10 percent “can be a reflection of improvements in life expectancy and health results in older Australians,” wrote Peyton.
However, such health improvements are not uniform, he said, adding that women in the first nations in particular members of health problems that have brought their average retirement age among those of other Australians.

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