INTHEBLACK September 2026 - Flipbook - Page 18
F E AT U R E
Longer lifespans and lower
birth rates are straining
retirement systems as fewer
workers support more retirees.
Businesses can benefit from
retaining experienced employees,
but must tackle ageism, skill
gaps and added workforce costs.
As people work longer, access
to financial advice, training
and inclusive cultures becomes
increasingly important.
Beyond the
finish line
Retirement used to mean leaving the workforce at a predetermined age.
Today, longer lifespans and changing demographics encourage a more
flexible approach. As the trend looks set to continue, forward-thinking
businesses can make the most of an older, multigenerational workforce.
Words Domini Stuart
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18 INTHEBLACK September 2026
OVER JUST 50 YEARS, AVERAGE
life expectancy has increased by more than
a decade in developed nations. Around the
world, this is raising questions about
ageing and retirement for individuals,
organisations and governments.
“A combination of increasing life
expectancy and falling birth rates means
there are fewer workers to support a growing
number of retirees,” says Richard Webb,
superannuation lead at CPA Australia.
“This is what economists call a declining
dependency ratio — and it is putting
governments under pressure to delay
retirement. The longer people pay tax,
the more they contribute to the rising
costs of ageing.”
In Australia, where retirement savings
are largely built through superannuation,
there is a risk that individuals will start
to outlive their savings. This will make
them more reliant on the Age Pension,
which is a significant government cost.
In 2024–25, Age Pension expenditure was
A$62.2 billion, which was 8.4 per cent
of the federal Budget.
“The Age Pension sits at the foundation
of the retirement system by underwriting
a base level of income for all retirees,” says
Geoff Warren, a researcher and academic with
retirement think tank The Conexus Institute.
“These benefits provide a significant safety
net for retirees whose savings do not stretch
far enough.”
