More 70-year-olds are working than ever before—what’s going on?

Twenty years ago, the idea of a 70-year-old clocking in at work might have raised eyebrows. Today, it is increasingly common to see Australians pushing past traditional retirement boundaries. Behind this quiet revolution lies a mix of financial necessity, changing lifestyles, and the shifting nature of work itself.

What once seemed unusual has now become the norm—men in their 70s continuing in the workforce at rates far higher than before. Two decades ago, only one in ten men of that age bracket remained employed, but today it was one in four. For women, the shift was just as striking, with workforce participation nearly doubling in a single decade.

This transformation reflected more than statistics. It showed a fundamental change in how Australians approached the later years of life. Instead of the golf course or the garden defining retirement, many older Australians were choosing—or being forced—to remain engaged in paid work.

The Numbers Behind the Trend

Research from KPMG showed that the expected age of retirement from full-time work had climbed to 64.2 years for men and 62.4 years for women. The period between leaving full-time work and completely exiting the workforce stretched from 2.6 years in 2014–15 to 2.8 years today.

Even among men in their late 70s, almost one in ten remained in the labour force. For women, the participation rate at that age doubled from 5 per cent in 2014–15 to 9 per cent in 2024–25.

Overall, 15 per cent of Australians aged 65 and older were working—more than double the proportion in 2005. It was clear that the country was experiencing a profound redefinition of retirement.

Why Retirement Looked Different

The reasons Australians kept working were complex. One factor was policy, as the Age Pension eligibility age had increased to 67 for both men and women. For many, this meant working longer while waiting for government support.

Financial pressure was another powerful motivator. A KPMG survey showed that 65 per cent of Australians aged 65 and older worried about affording essentials, compared with 55 per cent of the general population. Rising costs outpaced pension payments, leaving retirees vulnerable.

Housing costs also played a role. In 2001, 80 per cent of people aged 55 to 64 were mortgage-free, but by 2016 only 56 per cent were. With mortgages continuing into retirement years, many Australians had little choice but to keep working.

Technology Made It Possible

One enabler of this trend was the changing nature of work. As KPMG economist Terry Rawnsley explained, ‘Given the physically demanding nature of work faced by blue-collar workers, it is very challenging for them to continue working into their 70s. Pulling out a laptop in your 70s is much easier compared to laying bricks at that age.’

The pandemic had accelerated remote work and flexible arrangements, making it easier for older Australians to contribute without enduring physical strain. This shift opened doors for many who otherwise might have retired earlier.

Health and Work in Later Life

Continuing to work could bring health benefits when conditions were supportive. Employment often provided social interaction, mental engagement, and a sense of purpose—all critical for wellbeing in older age.

Studies suggested that meaningful work helped reduce demand on publicly funded pensions while promoting better health outcomes. However, not all jobs were beneficial. Poor quality work—jobs that were insecure, physically demanding, or offered little autonomy—were linked to health risks similar to unemployment.

Older workers faced greater health challenges, including hypertension, arthritis, and higher risks of cardiovascular disease. They also had a 5–10 per cent greater chance of developing mental illness or musculoskeletal injuries compared with younger workers.

Two Very Different Retirement Journeys

Not every Australian experienced retirement the same way. White-collar professionals could take advantage of flexible arrangements and extend their careers gradually. These ‘ageless workers’ often chose their hours and locations, making transitions smoother.

Blue-collar workers, on the other hand, faced more difficult circumstances. Physical jobs, injuries, and health issues often forced earlier retirements. Ironically, those who most needed income from extended work were the least able to earn it.

Workplace bias added another layer. Two-thirds of organisations seldom or never offered unconscious bias training for managers, and among those that did, half admitted it failed to address age-related bias. These barriers restricted opportunities for older employees.

Australia in Global Context

Australia’s retirement age of 67 placed it among European nations such as Italy, Denmark, and Greece. The average age of retirement rose from 53.5 years in 2000 to 64.8 years in 2022. Projections indicated further increases, with the pension age possibly reaching 70 by 2043.

This trend was not unique to Australia but part of a worldwide shift as populations lived longer. The challenge for policymakers was balancing sustainable pension systems with the realities of ageing workers.

Navigating the New Retirement Reality

For individuals nearing retirement, these changes created both opportunities and uncertainties. Some found satisfaction in extending their careers, while others worked longer out of financial necessity. With 63 per cent of Australians over 67 receiving some form of Age Pension, additional income streams were crucial.

Employers also faced choices. Professor Carol Kulik of the University of South Australia noted that ‘Older workers are more loyal to organisations, tend to stay with employers for a long time, and don't take many sick days.’ By valuing older workers, companies could retain institutional knowledge and improve workplace stability.

The social impact of longer working lives was also notable. Older workers served as mentors, guiding younger staff and strengthening workplace culture. Work often kept them socially connected, which research showed was vital for health and happiness.

Professor Andrew Brooks, a 76-year-old urologist, captured this sentiment well: ‘You can't walk along the beach eight hours a day, seven days a week. You need something more exciting in your life.’

A Personal Decision

Ultimately, whether to work into one’s 70s remained a deeply personal choice. For some, it was a matter of passion, for others, necessity, and for many, a blend of both. What had changed was the growing acceptance that retirement was no longer a fixed milestone.

The traditional three-stage life of education, career, and retirement was giving way to a more flexible and fluid path. Australians were increasingly shaping their own definitions of retirement, with more options and more years of meaningful engagement ahead.

Working later in life often raises questions about how income from employment interacts with retirement benefits.

For many, this balance can be tricky—staying active and earning extra money while ensuring entitlements are not reduced.

If you’ve ever wondered how paid work could change your pension situation, this next story takes a closer look.

Read more: Retired but still working? Here’s what you need to know about how it affects your Age Pension

Are you planning to work past traditional retirement age, or will you embrace a different path?