It’s a trend many businesses may not have seen coming. In the wake of COVID, some Australians are planning to bring their retirement date forward and leave the workforce for good.
Recent research commissioned by Equip* revealed that 14.5% of people are planning to retire sooner as a result of the pandemic. Of these respondents, 42% intend to bring their retirement forward by 4-5 years.
The research suggests there are three main reasons for this:
1. Shifting priorities
Uncertainty during the pandemic, and the uptake in remote working, prompted many people to reassess their approach to work and leisure.
2. Improved income and career opportunities
Around one in four workers said their career opportunities have improved since COVID. A further 28% have experienced an increased annual income since the start of COVID.
3. Increased focus on super and investing
During the pandemic, one in five Australians invested for the first time. What’s more, 39% of people see their super as more important since the beginning of COVID. Overall, 23% are investing their disposable income into super and another 22% plan on doing this in the near future.
What this means for employers
Alongside slowly increasing retirement numbers from even before the pandemic started^, businesses should be prepared for an influx of Australians wanting to hang up their boots.
One of the ways to address this is by offering flexible working policies. Working from home eliminates travel time and allows employees more time for activities outside of work, without compromising their skills or contribution to your business. You may also consider offering hybrid working arrangements that allow employees to work remotely while travelling.
These types of ‘work from anywhere’ flexible workplace arrangements may deter older employees who desire greater work/life balance from rushing towards retirement. For your business, it can help you retain great employees for longer and continue to benefit from their considerable knowledge and skills.
*The research surveyed more than 2,000 Australians across all states and territories.
^According to Pew Research Institute, retirement rates among those born 1946-1964 doubled in 2020.
