There is a bit of a misconception that people in ...
There is a bit of a misconception that people in their 60s aren’t employable. But we actually disagree with this.

We see a lot of clients in their 60s who don’t want to fully retire yet. Instead, they want to work part-time, and sometimes this can mean having to look for a new job. Many are put off because they believe they are not very ‘employable’.
 
But as we said, we disagree with this. People in their 60s usually have a lot of experience in their field. They are reliable, punctual and organised. On the other hand, young people often have many different jobs as they work out what they want to do long-term, or go from job to job while they are studying. Younger people are more fluid with jobs and perhaps even where they live. And from an employer’s perspective, the hardest thing is training up someone new knowing they might move or get a different job in a short period of time.

At the age of 60, you gain access to your super and you can create a 0% super income stream. People often struggle to retire fully and we often see people continue working past 65 on a part-time or casual basis. There are financial as well as emotional aspects to this. Financially, it takes the pressure off your super fund; and emotionally it is easier to cut down your hours rather than fully retire. People who fully retire often end up going back to their job as they miss having something to do or miss working in their industry. Others might try something entirely new.

Let’s have a look at an example of how working part-time can help you financially once you’ve retired. A couple working part time earn $25,000 each. Then they withdraw $20,000 each from their super. In that year, that gives them $90,000 of income – but they are only working part-time, and only a small percentage of their super is coming out, meaning more cash stays in the fund which can accumulate and grow each year. Many people go travelling as well during this time, being able to take leave or go away on weekends. They compare working part time to being in their 20s again and having their first job – the money can be spent on anything they want. 

Retiring partially also gives people the choice of where, when and how they work. That is, there can be a lot of flexibility in hours and income. In fact, we even see employers becoming more flexible and offering incentives and reduced hours in order to keep their employee.

From what we've seen, people are actually a lot more employable in their 60s than they think. If you're listening to this podcast chances are you're already thinking about your future – you are organised, you are reliable – all things that employers are looking for. 

Get in touch if you’d like advice on how to manage working part-time after retirement! podcast@mo50.com.au 

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Published by Dallas Davison, Michael Hogue and Ali Hogue. September 9, 2021