40,000 retirees expected to keep working
Nearly 40,000 Australians who had planned to retire in 2009 are likely to be forced into part-time work as the international financial crisis continues to erode the value of homes and savings.
Research by Rice Warner Consulting shows that the country’s 2.3 million retirees are 20% poorer than they were a year ago. And of 155,000 Australians who planned to retire this year between 38,000 and 40,000 will aim for part-time jobs, if employers can make the work available.
Rice Warner estimates that the average lump-sum retirement payment was $135,000 in July last year but that this figure had reduced by at least $25,000 since then. The research company director, Richard Weatherhead, told The Australian newspaper that the value drop in savings would force some people back into the workforce and many to reduce their spending patterns.
“Those who had planned to buy a new car, refurbish their house, or go on a trip are probably reconsidering,” Mr Weatherhead said.
A spokesperson for the Federal Treasurer, Wayne Swan, said that deeming rights were likely to be lowered in April in a move to assist more than 500,000 part-pensioners. The Government is expected to act on the deeming rates when interest rates come down.
