When retirees change their minds

More older people are turning their backs on “the dream” and going back to work

- VITA PALESTRANT

Retirement is no longer set in stone. More retirees are heading back to work. Some wrestle with a loss of status and a loss of purpose while others worry about how they will make their savings last. Either way, there’s a growing trend towards “unretiring”.

“People’s circumstances change,” says Colin Lewis, head of strategic advice at Fitzpatricks Private Wealth. “They often retire and then find that they either need the stimulation or that they need more funds to live off, and re-enter the workforce.”

Nick Bruining, independent financial planner and director of Bruining Partners, says often retirees find it hard to adjust and find a purpose in life.

“People underestimate the psychological impact of retiring. Many people enjoyed what they were doing and the status it brings. Being a doctor, accountant, lawyer or teacher has a lot more status than ‘retiree’.”

By 2047, 25% of the population is expected to be over 65, almost double the proportion today, according to AustralianSuper. The fund’s head of business growth, Vicky Maguire, says the way people approach retirement has changed radically from previous generations and a fresh approach is needed to support workers that choose to “unretire”.

Bruining says employers often approach former employees to do fill-in work. “It may be intermittent or seasonal, or at other times ask them to work a day or two a week.”