Staying in the workforce and loving it

For many Aussies, thoughts of retirement start in our 40s. No matter what jobs we’ve had, career we’ve followed or business we’ve created, the novelty of work can start to wear off after two decades or so.

When we were still in school, we couldn’t wait to venture out into the big, wide world and start earning a living – even if it was as a Thursday night/Saturday morning check-out chic at Target or flipping burgers at McDonald’s.

The freedom that a wage or salary brings can be euphoric.

As we settle into adulthood, we get used to the routine of work – even becoming comfortable in the monotony.

We try to build the bank account, slowly increase the superannuation, live life and make plans.

But after 20 years, and with possibly another 20 ahead of us, the idea of work changes. It becomes much more of a means to an end. That end is retirement.

We aim to pay off the house, see the world, enjoy the grandkids and become more involved in the community.

Then, a weird thing happens to  some of us. Just as we can see the end in sight, with only a couple of years to ‘pension age’ or feeling comfortable financially to give up work, those thoughts of retiring become daunting.

Sure, we want to take things a little easier and meet all those ‘retirement’ goals. Yet, the closer we get, we can’t quite let go. And if we do finally retire, it doesn’t last long before we end up returning to the workforce.

We admit we enjoy working – interacting with colleagues, connecting with members of the public, staying fit and healthy, and having a reason to get out of bed in the morning.

We still have plenty to offer in experience, wisdom, ability, energy.

Maybe the answer lies in cutting back the hours but still earning enough to make the work/life balance enjoyable.

In fact, like no other time in our lives, we feel like we can finally ‘have it all’.

That’s how Peter Green feels. And his story resonates with those who have decided to put off retirement for now.

An international flight attendant, Peter was offered redundancy and chose to leave his full-time job of 34 years when Qantas was forced to shed its workforce in January 2020 at the height of the COVID-19 pandemic.

He was 56 at the time and had expected to continue in his role until retirement around 67.

The Qantas decision was the impetus for many of his colleagues to retire early.

Backed by superannuation and owning his own home, Peter says he was in a good financial position at the time and “probably could have” retired.

“But I just felt like I wasn’t ready,” he says during a break from behind the bar at Kings Beach Surf Club, where the lunch crowd is starting to trickle in.

“I had plenty to give still. I’m definitely still fit enough. I try to match it with the young guys. What I lose in some aspects, I gain in experience.”

Through the federal government’s JobKeeper scheme at the time, Peter,  also a former NSW policeman and  public servant, was eligible to apply for  part-time work.

A succession of interesting and  varied jobs has flowed in the five years since then.

An active surf lifesaver, who had brought his two children Erika and Nik through the movement from nippers, Peter tried his hand first as a swimming instructor and lifeguard at Caloundra Aquatic Centre.

Then for a while, he was unloading fishing trawlers but discovered that having “20kg boxes of frozen fish flying past your head” can be quite dangerous.

And he worked as a ‘general dogsbody’ for a mate at his manufacturing business but confesses:  “It wasn’t really me – I am definitely a people person.”

A former colleague’s tip about  work as a bar attendant at Beerwah Golf Club saw Peter head back into the hospitality duties he’d experienced as a flight attendant.

That led to the club offering him the position as bar manager “which I took but it just wasn’t quite what I wanted to do”.

The surf club rosters are much more Peter’s speed now.

“I thought I just want to be the guy who works day shift, then is at home, gets to know everyone and that sort of thing,” he says.

“I just wanted to ease into retirement rather than going and doing a 40-hour shift. I work between 15 and 25 hours usually a week. It’s gone down to 12 sometimes and at Christmas up to 40 or 35 because they needed me.

“And that’s the beauty of being a person who doesn’t need the 35/40 hours a week which a lot of the young guys do. They need that money to pay the rent.

“I’m flexible, which is great for the business and it works for me, too.

“They are very approachable when it comes to me asking for time off and, as I have given lots of notice, I will be heading to Europe for five weeks with the family later this year. (Semi-retired, over-55s)  are good for business because we’re  more reliable, also more flexible … and they trust us. If you’re like that, the business can be good for you and look after you as well.”

Keep in mind that the Australian Institute of Health and Welfare (aihw.gov.au) reports that life expectancy in Australia has improved dramatically for both sexes in the past century.

Life expectancy in Australia has increased by 13.7 years for males and 11.2 years for females since the 1960s.

Men aged 65 in 2021–2023 could expect to live another 20.1 years (an expected age at death of 85.1 years), and women aged 65 in 2021–2023 could expect to live another 22.7 years (an expected age at death of 87.7 years).

Peter can see himself fully retired, but that isn’t any time soon.

“You’re a long time retired,” he says.

“I’ll see how I go. I might just drop the hours back and maybe work one day a week (when that happens) or ‘call me when you want me’. I don’t know what I’m going to do.”

And he’s quite happy to let his superannuation keep building. Despite global stock markets taking a hit in recent times, he says a knee-jerk reaction that makes significant changes to his super is not the answer.

“I did that during the GFC (Global Financial Crisis) and got burnt badly,”  he recalls.

“I put my super into cash and then it all bounced back and I missed the bounce. I learnt my lesson. You’ve just got to ride the ride. I haven’t even looked at my super (recently). I’m not game to look at it. It will bounce back.

“It’s a great thing not to touch it and it’s been having a life of its own. It’s been growing quite nicely.

“We’ll just wait until the craziness disappears and it all settles down.”

Yearning to keep earning

THERE are no restrictions on how much Australians can earn after retirement.

But remember: the more you earn, the more tax you will pay, and the more you risk reducing or losing Centrelink Age Pension payments.

Of course, every dollar counts when you’re an aged pensioner.

So, when Minister for Social Services Tanya Plibersek announced on June 12 that there would be changes to the age pension from July 1 to keep pace with the cost of living (with the CPI rising by 2.4 per cent in the year to March 31), some of the 2.6 million-plus recipients of social security payments surely gave a whispered “hip hip hooray!”.

Among the good news is an  increase in the amount pensioners can earn before their pension starts to be reduced under the income test.

The income test cut-off point to receive the full pension has now risen to $380 a fortnight combined for a couple ($8 extra a fortnight, making $9880 per annum), and to $218 a fortnight for singles (up $6 a fortnight, making $5668 per annum).

That might not seem much but can mean more bills are paid on time or extra medical expenses can be covered.

Any amount over the limit  reduces the pension by 50 cents for  each dollar until payments stop at $2516 per fortnight for singles.

Payments phase out completely  at a new limit of $3844.40 per fortnight for couples.

Although the standard Centrelink age pension payment remains at $1149 per fortnight for singles and $1732.20 combined for couples, the raised thresholds mean that thousands more Aussies may now qualify.

But it’s not all cut and dried. Finance guru Noel Whittaker points out, for example, that the rule that a pensioner couple will start to lose pension once income reaches $380 a fortnight does not affect an assets-tested pensioner.

So, it’s worth reviewing your position with a financial adviser and on the ato.gov.au website.

GET HELP  if you need it

• To get advice about your super income options, talk to your super fund.
• For questions about government benefits or retirement, call Centrelink’s older Australians line on 132 300. Ask to speak to a financial information service officer (for free). The helpline is open Monday to Friday, 8am to 5pm.
• To get professional advice on planning for retirement, seek financial advice. Make sure your financial adviser has an Australian Financial Services licence or is an authorised representative. Check they are authorised and registered to give personal financial advice and review their qualifications on the financial advisers register (moneysmart.gov.au/financial-advice/financial-advisers-register).
• For help with tax matters, see how tax applies to your super withdrawals on the Australian Taxation Office website or visit a tax professional.

Source: moneysmart.gov.au