The unexpected reasons Australians are retiring earlier than planned
A new report reveals 710,000 workers plan to retire over the next five years
2 min
Australia has a community of 4.2 million retirees, with another 710,000 intending to retire over the next five years and 226,000 of them planning to do so over the next two years, according to the Australian Bureau of Statistics (ABS). One of the biggest generations in Australia’s history – the baby boomers – is in the midst of its retirement years today. The baby boom began after WWII, with boomers being born between 1945 and 1964, making the youngest of this group 60 years old today.
The average age at which today’s workers intend to retire is 65.4 years. However, the long-term historical average is more than eight years earlier, with the average age at which existing retirees left the workforce being 56.9 years. People working in agriculture, forestry and fishing have the latest intended retirement age of 68.3 years. This is followed by workers in property at 67.1 years and manufacturing at 66.1 years. Workers in the mining sector have the earliest intended retirement age of 63.7 years, followed by workers in IT at 64 years and financial services at 64.3 years.
One factor that may be prompting people to retire earlier than planned is unforeseen circumstances, such as job loss, personal sickness or injury, or the need to provide care for someone else. Among existing retirees, an ABS survey found 13 percent retired because of sickness, injury or disability. Another 5 percent retired because they were retrenched, dismissed, or unable to find employment. Three percent retired to care for an ill, disabled or elderly person.
For 31 percent of retirees, gaining access to financial support was the main reason they retired. The age pension is the biggest source of income for most retirees today, followed by superannuation. The age at which baby boomers can receive the pension has increased over time from 65 to 67 years. However, they can access their superannuation earlier, once they reach preservation age.
Preservation ages vary depending on birth dates. Australians born before 1 July 1960 have a preservation age of 55 years. The preservation age increases by one year for every financial year from FY61 to FY64. For those born after 30 June 1964, the preservation age is 60 years. This means the youngest boomers will all gain access to their superannuation this year, which may prompt them to retire. Otherwise, they have seven more years to wait for eligibility for the age pension at 67.
Bjorn Jarvis, ABS head of labour statistics said: “In 2022-23, a Government pension or allowance was still the main source of personal income at retirement for 43 percent of retirees. This was followed by Superannuation, an annuity or private pension at 27 percent.”The full age pension is currently $43,752.80 per annum for couples and $29,023.80 for singles. The average superannuation balance for Australians aged 60 to 64 years is just over $360,000, according to the latest tax office data.
The impact of one of our largest generations retiring is reflected in surging superannuation payouts. New figures from the Australian Prudential Regulation Authority show an 18.1% increase in payouts over the 12 months to 31 March. The payouts, taken as lump sums or pension streams, totalled $112.9 billion.
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The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.
The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.
2 minThe boom in casual footware ushered in by the pandemic has ended, a potential problem for companies such as Adidas that benefited from the shift to less formal clothing, Bank of America says.
The casual footwear business has been on the ropes since mid-2023 as people began returning to office.
Analyst Thierry Cota wrote that while most downcycles have lasted one to two years over the past two decades or so, the current one is different.
It “shows no sign of abating” and there is “no turning point in sight,” he said.
Adidas and Nike alone account for almost 60% of revenue in the casual footwear industry, Cota estimated, so the sector’s slower growth could be especially painful for them as opposed to brands that have a stronger performance-shoe segment. Adidas may just have it worse than Nike.
Cota downgraded Adidas stock to Underperform from Buy on Tuesday and slashed his target for the stock price to €160 (about $187) from €213. He doesn’t have a rating for Nike stock.
Shares of Adidas listed on the German stock exchange fell 4.5% Tuesday to €162.25. Nike stock was down 1.2%.
Adidas didn’t immediately respond to a request for comment.
Cota sees trouble for Adidas both in the short and long term.
Adidas’ lifestyle segment, which includes the Gazelles and Sambas brands, has been one of the company’s fastest-growing business, but there are signs growth is waning.
Lifestyle sales increased at a 10% annual pace in Adidas’ third quarter, down from 13% in the second quarter.
The analyst now predicts Adidas’ organic sales will grow by a 5% annual rate starting in 2027, down from his prior forecast of 7.5%.
The slower revenue growth will likewise weigh on profitability, Cota said, predicting that margins on earnings before interest and taxes will decline back toward the company’s long-term average after several quarters of outperforming. That could result in a cut to earnings per share.
Adidas stock had a rough 2025. Shares shed 33% in the past 12 months, weighed down by investor concerns over how tariffs, slowing demand, and increased competition would affect revenue growth.
Nike stock fell 9% throughout the period, reflecting both the company’s struggles with demand and optimism over a turnaround plan CEO Elliott Hill rolled out in late 2024.
Investors’ confidence has faded following Nike’s December earnings report, which suggested that a sustained recovery is still several quarters away. Just how many remains anyone’s guess.
But if Adidas’ challenges continue, as Cota believes they will, it could open up some space for Nike to claw back any market share it lost to its rival.
Investors should keep in mind, however, that the field has grown increasingly crowded in the past five years. Upstarts such as On Holding and Hoka also present a formidable challenge to the sector’s legacy brands.
Shares of On and Deckers Outdoor , Hoka’s parent company, fell 11% and 48%, respectively, in 2025, but analysts are upbeat about both companies’ fundamentals as the new year begins.
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