What does retirement look like for you? For some, it’s long holidays, family time, and finally slowing down. But for many older Australians today, retirement isn’t about stopping altogether — it’s about reshaping life to include both work and leisure. Welcome to the era of semi-retirement
More retirees are choosing to keep a foot in the workforce, taking on part-time or flexible jobs well past the official retirement age. It’s not just about money — though the extra income certainly helps with cost-of-living pressures. For many, it’s also about staying active, maintaining purpose, and enjoying the best of both worlds.
New figures from KPMG Australia show the number of Australians working into their 70s is steadily rising. Two decades ago, just 1 in 10 men were still employed at age 70. Today, it’s closer to 1 in 4. Participation among women in their 70s has also climbed, nearly doubling in the past decade.
KPMG Urban Economist Terry Rawnsley says this shift reflects a much bigger change than just cost-of-living pressures.
“The growth in ageless workers isn’t a recent phenomenon that spiked following the cost-of-living pressures of 2023-24. It is a longer-term trend that suggests a structural change to the concept of retirement,” Rawnsley said.
COVID has also influenced retirement patterns.
“There was a slight drop in the expected age of retirement immediately after the end of COVID, as workers who had delayed extended travel due to COVID restrictions left the workforce,” Rawnsley said.
“These ‘ageless workers’ have since returned from travel and rejoined the workforce which also explains a rise in the participation rate for older Australians.”
The research also found that, on average, men now retire from full-time work at 64.2 years, while women step back a little earlier at 62.4 years. But leaving full-time work doesn’t always mean leaving the workforce altogether. For men, the gap between finishing full-time work and fully exiting the workforce has stretched from 2.6 years in 2014-15 to 2.8 years today — showing that many are easing out of work more gradually.
“For women, the gap has typically been around three years, though it narrowed to just over two years during the pandemic as many older workers took on additional hours,” Rawnsley said.
Advances in workplace flexibility are also making semi-retirement more appealing
“The adoption of working from home has made many older Australians in professional jobs realise they can ‘semi-retire’ and continue dabbling in the workforce part time,” Rawley added.
“More people now have the luxury of semi-retirement where they can do part-time flexible work that can supplement retirement savings, supporting a more comfortable lifestyle, and even supporting their children and grandchildren.
“It also fosters social interaction and offers a sense of purpose by enabling individuals to remain engaged and mentally stimulated.”
Semi-retirement isn’t about working forever — it’s about creating balance. Whether it’s a few days a week at the desk, consulting in your field, or picking up flexible roles that fit around your lifestyle, many Australians are showing that retirement can be tailored to you.
So perhaps the real question is: not when will you retire, but how will you retire?
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.