Tuesday, March 06, 2012

Australia: Effect of Global Financial Crisis on Older Workers

According to researchers from National Seniors Australia's Productive Ageing Centre, older single women in poor health and on lower incomes were the worst hit of Baby Boomers ( 5.5 million people born between 1946 and 1965, with many of the eldest already retired) by the global financial crisis. In the report--"Ageing Baby Boomers in Australia: Understanding the effects of the global financial crisis," around half those still working said they had been affected by the crisis and would delay their retirement, compared with 27% who rated themselves financially secure.

The survey reported that, despite the widespread financial effects of the recession, only 24% of retirees affected by the crisis expected to return to work or increase the paid work they were already doing. This proportion was even lower for those who were not financially affected by the GFC (16%).
Workers most affected by the crisis are set to stay in paid employment longer than anticipated and appear to be contributing more to their superannuation plans than pre-GFC. Interestingly, working baby boomers affected by the crisis are more likely to withdraw superannuation funds earlier at the expense of tax bonuses.
Among the lessons for the future suggested in the report, employers and governments are told that they "need to concentrate on making workplaces more welcoming to older workers," and that "one of the best ways to do this is to reduce ageism in hiring practices and work cultures."

Source: National Seniors Media Release (March 5, 2012)

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