Easing Out, Not Dropping Out: The Rise of Flexible Retirement
For many Australians, retirement is no longer a sudden stop. Increasingly, people are choosing a phased approach – working part-time before leaving the workforce completely.
The Shift in Retirement Patterns
According to the ABS, the average age of retirement is about 61.4 years. However, the intended retirement age is higher – about 65.4 years.* This gap reflects the growing trend of flexible retirement.
Why It’s Happening
- Financial security: Extra income in the early years helps stretch super.
- Identity and purpose: Work provides structure, social connection and meaning.
- Health and longevity: Many in their 60s are healthier than past generations, making part-time work realistic.
Benefits of Phased Retirement
- Financial boost
- Smoother transition
- Social connection
Final Thought
Retirement doesn’t need to be all or nothing. Flexible retirement offers financial advantages, smoother transitions and more control.
References
- Australian Bureau of Statistics (ABS). Retirement and Retirement Intentions, Australia, 2023–24.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
