In the current uncertain economic climate, researchers say for those on the brink of retirement, money is more of an issue now than it was two years ago and many potential retirees have been forced to re-think their retirement plans.
According to this new research by Australian experts the global financial crisis has meant that while money is clearly a key priority for most people, it is not the only inducement when it comes to deciding when to retire.
The findings of a new study contrast with previous research which suggested that remuneration was not a strong factor influencing workforce participation decisions.
The study was conducted by Nicholas Vrisakis, a senior consultant with the Voice Project, a research and consulting team based in the Department of Psychology at Macquarie University which specialises in using organisational surveys to diagnose leadership, culture and human resource management.
Mr Vrisakis says they found that the most effective inducement to potentially delay retirement was better remuneration, whereas research done in 2007, before the financial crisis, did not suggest that rewards and remuneration were the most important thing, or were even a significant factor affecting workforce participation rates for mature age workers.
Mr Vrisakis says this latest research clearly indicates that money, while not the only thing, is very important to people considering retirement.
The study also found that the availability of part-time work and flexibility in the workplace were important considerations which influenced employees’ decisions on whether to retire and Mr Vrisakis says the move to part-time work, along with flexible working conditions, was one of the most frequently cited reasons in the survey for encouraging a delay.
The research aimed to determine employer strategies that might delay retirement amongst those who were considering retirement in the next five years and used survey data from 158 respondents.