Retirement age rises as older Australians keep working

18 September 2025

KPMG Australia analysis of ABS Labour Force Survey data reveals that in 2024-25:

• The expected retirement age for men was 67 years, up by 2.2 years since 2014-15.
• The expected retirement age for women was 65.3 years, up by 1.1 years since 2014-15.

While increases to Age Pension eligibility over the past decade have contributed to the shift up in the expected retirement age, over the long-term it is being driven by a growing cohort of ‘ageless workers’ – older Australians who are happy to stay in the workforce well beyond retirement age.

KPMG Urban Economist Terry Rawnsley explains, “20 years ago, 1 in 10 men were working at age 70. Today, it’s 1 in 4. Even for men in their late 70s, almost 1 in 10 remains in the labour force."

“The growth in ageless workers isn’t a recent phenomenon that spiked following the cost-of-living pressures of 2023-24. It is a longer-term trend that suggests a structural change to the concept of retirement,” Rawnsley adds.

The increase in white-collar workers who can work longer in life could explain this evolution of retirement.

“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,” Rawnsley said.

The remnants of COVID restrictions are also a factor in the rising retirement age.

“There was a slight drop in the expected age of retirement immediately after the end of COVID, as workers who had delayed extended travel due to COVID restrictions left the workforce. These ‘ageless workers’ have since returned from travel and rejoined the workforce which also explains a rise in the participation rate for older Australians,” Rawnsley said.

The notable rise in workforce participation among older women and men further supports an evolution in the way Australians retire.

For example, the participation rate for women aged in their 70s in 2024-25 sits at 9%, up from 5% in 2014-15. For men aged 70 the participation rate is 14% in 2024-45, up from 11% in 2014-15.

“The labour force participation rates for women in their 70s are still about half that of men. However, they’ve been increasing rapidly, largely due to improved job flexibility in ‘knowledge-intensive’ roles and tighter labour market conditions,” Rawnsley said.

Is semi-retirement the ‘new retirement’?

The structural changes to Australia’s labour force are also blurring what was once a sharp divide between work and retirement. 

The expected age of retirement from full-time work is 64.2 years for men and 62.4 years for women.

For men, the gap between leaving full-time work and leaving the workforce entirely has risen from 2.6 years in 2014-15 to 2.8 years in 2024-25.

“For women, the gap has typically been around three years, though it narrowed to just over two years during the pandemic as many older workers took on additional hours,” Rawnsley said.

“The adoption of working from home has made many older Australians in professional jobs realise they can ‘semi-retire’ and continue dabbling in the workforce part time,” added Rawnsley.

“More people now have the luxury of semi-retirement where they can do part-time flexible work that can supplement retirement savings, supporting a more comfortable lifestyle, and even supporting their children and grandchildren.

“It also fosters social interaction and offers a sense of purpose by enabling individuals to remain engaged and mentally stimulated,” he said.

Methodology and input data sources 

• Approached based on variant of the Static Estimate from the Australian Bureau of Statistics (ABS) Research Paper: Comparison of Methods for Measuring the Age of Withdrawal from the Labour Force, Nov 2005. Expected age of retirement is based on person age 50.
• Expected age of retirement based on single year age group participation, 3 year moving age.
• The analysis conducted by KPMG utilised data from the ABS Labour Force Survey Table Builder.