Treasury study shows boomers working longer

A new Federal Treasury Report has shown that the number of men aged 55 to 64 still in the workforce has risen to 66.5% over the past five years, while the proportion of working women in that age group has jumped from 35.6% to 44.6%.

Treasury suggests that one of the reasons for declining participation by older men in the workforce was structural change in Australian industry, with employment falling by 8% in the first half of the 1990s. The unemployment rate for older men peaked at 12% in 1994 but with the national skills shortage, the current level is only a little above the average rate of 4.6%.

Men now may also not be retiring early because their wives are not retiring either.

Poor health is given by men as the most common reason for retirement.

Part time work is also catching on with the 55-64 year old men; 10% now work part time compared with 25% of women.

Treasury believes that baby boomers may be taking a different attitude to working in their later years, and they may have a different set of income expectations for retirement. They may expect to live longer and in better circumstances than previous generations.