September 2022

The Jobs and Skills Summit held this month by the Australian Government has identified many ways to grow, retain and sustain the workforce. Only one of these was focussed specifically on older workers, introducing a temporary rule change to make it more attractive for retired people to undertake work without losing their pension.

It is a start but it is not enough.

In 2021, the workforce participation rate of Australians over 65 was 15%. This figure is more than twice what it was in 2001, indicating that many more people are remaining in the workforce for longer. This is good news for Australia economically and socially, as more people continue to contribute their knowledge, skills and experience to society.

At the same time, while the average retirement age is reported to be 55, retirement intentions have changed over time, with the number of people reporting that they expected to work past 70 nearly doubling between 2008-09 and 2018-19. Yet the OECD average retirement age remains in the mid-60s, although people are now living much longer. Indeed, Australia is doing better than many OECD countries in terms of the proportion of people aged 55-64 who are still in the workforce, at 64% (Iceland tops the list at over 80%).

The disparity between people’s expectations and the average retirement age suggests that many people who would prefer to continue working are no longer doing so. This may be due to carer responsibilities or health reasons, or due to retrenchment and inability to regain employment.

As COTA’s CEO, Ian Yates, has written recently, while Australia is facing a significant shortage of workers across many sectors, there are tens of thousands of older Australians who would like to be gainfully employed and yet face insuperable obstacles – attitudinal, legal, structural, financial – to remaining in or returning to the workforce. Of these, undoubtedly the greatest obstacles are attitudinal. The UN’s Decade of Healthy Ageing baseline report in 2021 argues that one of the first priorities in improving the lives of older people is addressing attitudes and perceptions about ageing.

The Australian HR Institute’s 2021 report, Employing and Retaining Older Workers, indicates that 1 in 4 HR professionals report that there is an age above which they would be reluctant to recruit (although that age limit is rising over time). More worrying, 17% of HR professionals considered someone over 50 as an older worker, even though the number of people over 50 who are still active in the workforce is increasing.

Given that the population under 65 is not growing as fast as the population over 65, it is critical that we change our attitudes and practices towards recruitment and employment to take advantage of the skills and abilities of older workers who have much to contribute to productivity and prosperity.

It is worth noting that despite popular assumptions about innovation and entrepreneurship, recent research in the US finds that the average age of founders of growth-oriented companies is 45. There are numerous examples of individuals who have achieved remarkable success later in life; some of the more well-known include the following:

• Nelson Mandela, who became President of South Africa at the age of 75 and changed the course of his country’s history
• Grandma Moses, who started painting at the age of 78 and became one of America’s most loved artists
• Colonel Sanders, who began KFC in his 60s and created a global empire dedicated to fried chicken
• Arianna Huffington, who started The Huffington Post at 55 and influenced the development of internet journalism.

The late Queen Elizabeth II provides us with an excellent example of what working into older age can look like. Granted, she was born into the family business and into greater wealth than most of us can imagine. Even so, she accepted her responsibilities and remained in her role, active and contributing, until the last days of her life. Her son, King Charles III, comes to his role at a time when many people have retired. As the oldest British monarch to ascend to the throne, the new king is a reminder that we each can make a useful contribution at any age.

It is time for governments and the business sector to change the legal and policy environments to make it easier for people 60 and over to remain in the workforce for as long as they wish and can make a positive contribution. It is time for our media and our social narratives to embrace the fact that wisdom, insight and experience can only be gained through age and growth.