Once upon a time, early retirement was the dream. You’d leave work at 55, buy a caravan, and spend your days fishing, golfing, playing bowls, or watching sunsets you’d finally have time to enjoy. But as 2026 looms, that fantasy is starting to look … well, a bit outdated.

The smart money’s on working later and not because we have to, but because it makes everything about retirement work better. Australians are living longer, healthier and, crucially, more flexible lives.

Older Australians, especially women, are staying in the workforce longer than ever before.Credit: Getty

The average 65-year-old today can expect another 20-plus years of good health. That means retirement isn’t a finish line any more, it’s a long, evolving stage of life that can last three beautiful decades.

The data backs it up. According to KPMG’s analysis of the ABS Labour Force Survey just released, the expected retirement age for Australian men has climbed to 67, and for women to 65.3 both now the highest in history.

That’s not just a reflection of cost-of-living pressure; it’s evidence that people are staying engaged in the workforce, redefining what work looks like for themselves, and using their superannuation more strategically to create a life they want.

And with life expectancy for the median 65-year-old now 88 for men, 90 for women and 94 for a couple, why would you stop work you enjoy before you have to?

Turns out that working longer – if you’re doing something you enjoy – isn’t just good for your finances, it’s good for your health.

KPMG also found that the gap between when Australians leave full-time work and when they fully retire has stretched to nearly three years. In that time, many are doing exactly what this new generation of retirees does best – easing out of work on their own terms, making their prime-time count before heading off into their epic retirement.

New data from

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