INTHEBLACK September 2026 - Flipbook - Page 20
F E AT U R E
“A combination of increasing life expectancy and falling birth
rates means there are fewer workers to support a growing
number of retirees. 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.”
RICHARD WEBB, CPA AUSTRALIA
THE IMPACT ON BUSINESS
The OECD estimates that building
multigenerational workforces and giving
older employees more opportunities to work
could raise per capita GDP by 19 per cent
over the next 25 years. Meanwhile ageism
remains a significant barrier to longer
working lives. Research from the Australian
Human Rights Commission found that only
56 per cent of employers were highly open
to hiring workers aged between 50 and 64,
despite older workers rating higher
than their younger colleagues
for loyalty, reliability and ability to cope with
stress. Nearly 60 per cent of respondents also
said that the departure of older workers led
to a loss of key skills.
“Some occupations, including accounting
and financial advice, are experiencing an
acute shortage of talent,” Webb says. “In this
case, it makes even more sense to retain older,
highly experienced people for as long as
reasonably possible.”
However, an older workforce can also bring
extra costs. These include potentially higher
salaries, accumulated benefits such as long
service leave and continuing contributions
to superannuation.
“In the past, there were age limits and other
restrictions around some superannuation
contributions for employers,” Webb says.
“Those rules have largely been removed,
and employers are now generally required
to continue making superannuation guarantee
contributions for all employees, regardless
of their age.”
THE ADVICE GAP
A shortage of financial advisers is causing
headaches for the people who choose to
work longer.
“They may have a number of ways to
use their super, so the decisions they need
to make can be complex,” Warren says.
“Addressing the advice gap is a big challenge
for policymakers and the super industry.
Super funds have been slow to develop
their retirement offerings, in part due to
the difficulty of building infrastructure
to support retirees with differing needs.”
This lack of professional advice is
driving some retirees to go it alone,
potentially putting their trust in AI
for help or direction.
20 INTHEBLACK September 2026
