For many Australians, retirement no longer means shutting the laptop, handing over the keys, and heading straight to the golf course. More and more people are choosing to scale back, not step out, as they ease into this next life stage.
It’s a shift that’s becoming known as ‘flextirement’: a flexible transition into retirement rather than a hard stop.
Adviser and client
Why more Australians are easing into retirement, not exiting completely
According to recent statistics, more than 70% of Australians aged 50 to 64 have no intention of retiring completely.1 Even among those aged 65 and over who are still working, many are doing so for reasons beyond just money: around one in four say they work for social connection, routine, mental stimulation or purpose.2
Participation rates among older workers have also risen steadily over the past two decades. In 2000, just over half of Australians aged 55 to 64 were in the workforce. Today, it’s more than 70%, with participation among people aged 65 and over almost doubling in that time.3 Whether for financial reasons, to keep the brain firing or a bit of both, there’s no doubt that more and more Australians are remaining in the workforce than ever before.
The role of identity in retirement planning
Leaving work often isn’t just a financial decision. For many long-serving professionals, their role is a big part of who they are. It brings structure, responsibility and a sense of community. Letting go of that all at once can be unsettling, even if retirement itself is something they’ve looked forward to.
That’s where a gradual step-down can be appealing. Some people move to part-time hours. Others shift into mentoring, training or occasional project work.
Staying connected to the workplace, even in a reduced capacity, can make the transition easier to manage emotionally, socially and practically.
Workplace reforms
While the trend is clear, flexible work arrangements for older Australians haven’t always kept pace. Some organisations still lack formal policies or pathways for experienced staff to reduce their hours, adjust responsibilities or move into mentoring roles. This can leave people feeling like they either have to keep working full-time or leave altogether, even if they’d prefer something in between.
In sectors like healthcare and education, where knowledge and relationships are built over time, this can be a lost opportunity for both the organisation and the individual. Many of these roles are facing workforce shortages. Retaining skilled staff for a few more years in a different capacity makes good business sense and supports smoother knowledge transfer.
Planning for flexibility in life and income
If your employees are starting to think about retirement, it’s worth having early conversations about their options.
Some employers offer transition-to-retirement programs or flexible pathways. Others may be open to more informal arrangements if you take the lead.
These conversations don’t need to be overly formal. You might start by talking to your team about how their role could evolve over the next few years. Some might like to begin by reducing hours gradually, transitioning to project-based work or mentoring, or stepping away from physically demanding duties.
The key is to be clear about the need to set goals, be open about their needs as well as the workplaces', and be ready to explore what’s possible together.
Support your teams transition to retirement with confidence
Explore practical tips and tools to help your staff navigate flexible retirement options. Download our report here, or speak with our employer support team to learn more.
Call us on 1300 878 737 Monday to Friday 8:30am to 5:30pm (AEST / AEDT).
