What we learnt about over-60s Australians in 2024: Trends, insights, and key statistics

In 2024, Australia’s population of over-60s navigated a transformative period driven by longer lifespans, shifting retirement paradigms, and increasing financial pressures.

Here’s a quick look at the trends, statistics, and movements that define the retirement and financial landscape for Australians aged 60 and above in 2024.

1. Retiring later: A shift in norms
   Older Australians are retiring later than ever, reflecting both financial pressures and changing attitudes toward work:
   • The average retirement age is now 66.2 years for men and 64.8 years for women, the highest since the 1970s.
   • Many are extending their working lives, with 20% of the workforce now comprising individuals over 55.
   • The trend of “un-retiring” has emerged, where retirees re-enter the workforce to manage financial shortfalls.
   • Only 25% of Australians believe they will be able to retire at the traditional age of 65. Those delaying retirement are extending their working life by an average of six years.
2. Rising costs of living and retirement
   The financial demands of retirement have increased significantly, with updated income standards and ongoing challenges:
   • Couples now need $73,031 annually, and singles $51,814, to maintain a comfortable retirement.
   • Over 50% of retirees and older workers still hold mortgage debt.
   • Many retirees underestimate their reliance on the Age Pension, which currently provides 23% of retirees’ income.
3. Housing and equity release: A growing solution
   With over $1 trillion in home equity held by retirees, home ownership remains a critical financial resource:
   • 99% of Australians aged 65–74 live in private dwellings, emphasising their desire for independence.
   • Conversely, an increasing number of Australians over 50 are entering retirement as renters due to rising property prices and mortgage sizes. This trend underscores the need for secure and affordable rental options for older Australians.
   • Reverse mortgages are increasingly becoming a cornerstone of retirement funding, with a 19.7% growth in portfolios like Heartland Bank’s, and lender Household Capital raising $263m through securitisation to expand its reverse mortgage loan funding in 2024.
4. Longevity challenges: Living longer, planning smarter
   Australians are living longer, requiring an increased focus on financial planning to support extended retirements:
   • Life expectancy in Australia continues to rise, with projections suggesting an average of over 80 years in the near future.
   • As life expectancy continues to rise, retirees are now needing to plan for 20+ years of post-retirement living.
   • In 2024, Baby Boomers were encouraged to considering renting out unused rooms from 13 million spare spaces across the country in a bid to alleviate the housing crisis while at the same time, providing supplemental income.
5. The future of retirement: Evolving perspectives
   Traditional notions of retirement are fading as older Australians seek meaningful engagement and financial stability:
   • Part-time work and new entrepreneurial ventures are becoming increasingly popular among retirees.
   • More retirees are using financial products such as equity release to refinance mortgages, fund aged care, or enhance their quality of life (= 20% growth in the equity release market in 2023/24).
   Conclusion: Navigating a new era for Australians Over 60
   2024 has brought some significant insights into the lives of Australians over 60. With longer lifespans and a growing focus on independence and financial stability, Australia’s over-60 demographic is redefining what it means to age well and purposefully.
   As we look ahead, there is a growing emphasis on creating flexible, sustainable, and dignified pathways for Australians to enjoy their later years. Whether through financial innovation, housing solutions, or evolving retirement models, the potential for a fulfilling life beyond 60 is stronger (and longer) than ever.
    

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