SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR FOREIGN AFFAIRS AND TRADE
SHADOW ASSISTANT MINISTER FOR ENERGY AND EMISSIONS REDUCTION
LIBERAL SENATOR FOR WESTERN AUSTRALIA
3 February 2025
INFLATION AND HOUSING FAILURES PUSH OLDER AUSTRALIANS BACK TO WORK
New national data reveals a deepening cost-of-living crisis across Australia, with record numbers of older Australians being forced back into the workforce as inflation, housing costs and interest rates continue to bite under the Albanese Labor Government.
Across the country, Australians are delaying retirement at unprecedented rates, with workforce participation among people aged 65 to 74 climbing steadily as fixed incomes are eroded by rising prices and mounting housing costs.
Once, working into your late 60s and 70s was a personal choice, but under Labor it is increasingly a financial necessity.
ABS data shows retirement rates have collapsed over the past two decades.
Twenty years ago, nearly 70 per cent of women and almost half of men aged 60–64 were fully retired.
Today, those figures have fallen to just 41 per cent and 27 per cent respectively.
Census data also shows the number of Australians aged 55 to 64 who own their homes outright has almost halved over the past 20 years, leaving many approaching retirement with large mortgage debts and little financial flexibility.
Research from Digital Finance Analytics reveals the scale of the problem with three-quarters of retirees with a mortgage owe more than they have in superannuation, while the number of older Australians who planned to retire but changed their minds doubled in the year to September.
The average mortgage balance among this group is around $190,000, with many owing far more — in some cases up to $500,000 — forcing them to stay in the workforce longer than planned.
This crisis is being driven by Labor’s failure to contain inflation and manage the economy.
National inflation rose to 3.8 per cent in the year to December, up from 3.4 per cent the month before, pushing up household costs across power, rent, groceries and mortgages.
Experts warn these pressures are widespread and unavoidable, with the average household expected to be more than $2,100 worse off this year alone due to rising prices.
Cost-of-living stress is now the single biggest concern for Australians planning for retirement, with data from Equip Super showing workers are delaying retirement by up to six years, while more than one in five Australians have been forced to reduce their super contributions simply to make ends meet.
At the same time, the so-called “bank of mum and dad” is placing growing pressure on older Australians, with many parents drawing on home equity or delaying retirement to help their children enter an increasingly unaffordable housing market.
The Federal Government’s own Intergenerational Report has warned that rising housing costs and mortgage debt among retirees will place increasing strain on the age pension and broader government finances.
Quotes attributable to Senator Dean Smith
“This surge in older Australians delaying retirement is not about choice — it’s about financial stress caused by Labor’s failure to manage inflation and the economy.”
“When three-quarters of retirees with a mortgage owe more than they have in super, that is a flashing warning light for the nation.”
“Labor’s cost-of-living crisis is forcing Australians to work longer, retire later and take on risks they never planned for.”
“Rising inflation, soaring housing costs and mounting interest rates have shredded the retirement plans of thousands of Australians.”
“Parents are staying in the workforce longer to help their kids buy a home, while still carrying their own mortgage debt — this is the real cost of Labor’s housing failure.”
“Australians deserve dignity and security in retirement, not an economy that traps them in the workforce just to keep up with rising bills.”
