According to analysis from KPMG, Australians are working for longer than ever before. Men are now spending an average of 2.2 extra years in the workforce compared with a decade ago, while women are working an additional 1.1 years on average.
The shift is particularly noticeable at older ages. Twenty years ago, one in 10 men was still working at age 70. Today, that figure has climbed to one in four. Even among men in their late 70s, almost one in 10 remains in the labour force.
Retirement rates have also fallen sharply. While 86% of women and 73% of men aged 65 to 69 were retired in 2003, those figures have now dropped to 63% for women and 61% for men. This highlights a significant change in how Australians approach work and retirement.
So, what’s behind this trend — and what are the benefits?
What are the reasons behind this trend?
Experts say that while the rising cost of living is one factor encouraging more people to remain in the workforce, it is too simplistic to view it as the sole driver. They point out that this trend began well before cost-of-living pressures became a major issue.
Some of the other reasons Australians are choosing to work for longer include:
Rising pension age
The increase in the age at which workers can access the Age Pension — now 67 — has seen more people remain in the workforce for longer.
Increased flexibility
The rise of working from home has encouraged some people to stay in the workforce longer. Growth in part-time and flexible work has also led many workers to transition gradually into retirement. This has turned retirement from a hard stop into a more gradual shift.
Improved health outcomes
Bec Wilson is an author and retirement advisor. She says improved health outcomes are a key driver behind Australia’s ageing workforce.
“The cognitive and physical capacity of a 70-year-old today has been proven to be more like that of a 53 to 55-year-old from the 1990s,” she told The Financial Review.
Increased workforce participation of women
Higher workforce participation among women has also seen more women remain in employment for longer.
Growth in white-collar roles
Terry Rawnsley is an urban economist at KPMG who worked on the study. He says the growth of white-collar roles has made it easier for people to continue working later in life.
“Given the physically demanding nature of work faced by blue-collar workers, it is very challenging for them to continue working into their 70s,” Mr Rawnsley told news.com.au.
“Pulling out a laptop in your 70s is much easier than laying bricks at that age.”
More retirees returning to the workforce
There has also been an increase in people who retire and later return to work, either due to financial necessity or a desire to stay active.
According to Wilson, this phenomenon is known as “first retirement”. It occurs when people eagerly anticipate retirement, only to find it does not meet expectations and choose to re-enter the workforce.
Benefits of delaying retirement
Studies show that delaying retirement can help people stay active and healthier for longer. Continuing to work can also improve financial security and allow for a more comfortable retirement.
However, the benefits extend beyond individuals. When people remain in the workforce longer, governments save money through reduced pension expenditure. Businesses also benefit from retaining experienced and highly skilled workers. This is especially beneficial in industries facing ongoing skills shortages.
An increasingly age diverse workforce means a variety of perspectives are considered in decision making.
As more Australians extend their working lives, many are reassessing their career direction, updating their skills or re-entering the workforce after time away. Whether you are changing roles , returning after retirement or simply aiming to stay competitive in a shifting job market, having a clear, well-positioned resume is essential at any stage of your career.
Are you looking for a new career? Melbourne Resume Writers can help. We offer a range of professional services, including resume writing and LinkedIn profile writing, to support you at every stage of your working life.
Article References
Bowes, M (16 November 2025) ‘Ageless workers like Ken and Adelle epitomise the future of retirement’, Financial Review, accessed 15 January 2026.
Micallef, C (18 September 2025) ‘Surprising reason more Aussies are working into their 70s’, News.com.au, accessed 15 January 2026.
Peyton, K (19 September 2025) ‘1 in 3 Australians in their late 60s are still working, new HILDA survey shows’, The Conversation, accessed 15 January 2026.