Terry Rawnsley, KPMG urban economist, said 20 years ago, 1 in 10 men were working at age 70, while today it’s one in four.

“Even for men in their late 70s, almost one in 10 remains in the labour force,” Rawnsley said.

“The growth in ageless workers isn’t a recent phenomenon that spiked following the cost-of-living pressures of 2023–24. It is a longer-term trend that suggests a structural change to the concept of retirement.”

Rawnsley continued that the increase in white-collar workers who can work longer in life could explain this evolution of retirement.

“Given the physically demanding nature of work faced by blue-collar workers, it is very challenging for them to continue working into their 70s. Pulling out a laptop in your 70s is much easier compared to laying bricks at that age,” Rawnsley said.

He added that the remnants of COVID-19 restrictions are also a factor in the rising retirement age.

“There was a slight drop in the expected age of retirement immediately after the end of COVID, as workers who had delayed extended travel due to COVID restrictions left the workforce. These ‘ageless workers’ have since returned from travel and rejoined the workforce, which also explains a rise in the participation rate for older Australians,” Rawnsley said.

The notable rise in workforce participation among older women and men further supports an evolution in the way Australians retire.

For example, the participation rate for women aged in their 70s in 2024–25 sits at nine per cent, up from five per cent in 2014–15. For men aged 70, the participation rate is 14 per cent in 2024–25, up from 11 per cent in 2014-15.

“The labour force participation rates for women in their 70s are still about half that of men. However, they’ve been increasing rapidly, largely due to improved job flexibility in ‘knowledge-intensive’ roles and tighter labour market conditions,” Rawnsley said.

The analysis also found that the structural changes to Australia’s labour force are also blurring what was once a sharp divide between work and retirement.

The expected age of retirement from full-time work is 64.2 years for men and 62.4 years for women.

For men, the gap between leaving full-time work and leaving the workforce entirely has risen from 2.6 years in 2014–15 to 2.8 years in 2024–25.

“For women, the gap has typically been around three years, though it narrowed to just over two years during the pandemic as many older workers took on additional hours,” Rawnsley said.

“The adoption of working from home has made many older Australians in professional jobs realise they can ‘semi-retire’ and continue dabbling in the workforce part-time.”