Poor health to hit Aussies’ retirement savings

Within the next 20 years, one in four men and one in five women aged in their sixties will be less able to work and to save for retirement due to their health, according to new research.

A new report from AMP and the National Centre for Social and Economic Modelling looks at how Australians age through their sixties and whether they will be healthy enough to work longer.

The report found that by 2035 one in four men and one in five women aged in their sixties will be in fair or poor health, reducing their ability to work and save for a quality retirement.

The research also predicted that for Australians currently in their forties and in fair or poor health, 65.1 per cent of men and 72.1 per cent of women will be unemployed when in their sixties.

Further, almost half of Australians currently aged 40-54, who are in very good health, are likely to see a decline to fair or poor health by 2035.

“Rather than simply working longer, we need to re-think our approach to retirement. Reaching a certain age shouldn’t mean we need to leave the workforce entirely,” said AMP’s chief customer officer Paul Sainsbury.

Early years in retirement should be a transition period with reduced levels of work, giving people more time to focus on their interests and wellbeing, while still saving money,” he said.

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