Australian retirees are contributing an estimated $16.5 billion a year through unpaid work, the equivalent of about 321,000 full-time jobs, new research has found.
The Retire with Purpose study by UniSuper calculated that retirees perform an average of 386.3 hours of unpaid work annually through caring, volunteering, community leadership, mentoring and sharing skills.
Yet 84 per cent of Australians surveyed believe the experience and abilities of retirees are not being used to their full potential, with a further 2.5 million people expected to retire over the next decade.
Among those already making an unpaid contribution is Phil Williams, 76, who spends up to eight hours a week during summer teaching adults to swim at Merewether Ocean Baths in Newcastle.
Mr Williams, from Merewether, said he began helping after seeing people struggle in the water.
“I became involved in teaching adults how to swim well because I saw so many people struggling in the water,” he said. “My goal is to help people incorporate swimming into their routines.”
He teaches people of different ages and backgrounds, including migrants who may feel anxious about entering the water. One student, a young Bangladeshi man, initially struggled to swim before eventually completing 50 metres without stopping.
“He eventually came to love the water and swam 50m non-stop,” Mr Williams said. “His smile and reaction were priceless. We are now like father and son. A beautiful thing.”
Mr Williams said swimming could improve both physical and mental health, while also helping people form social connections.
“Swimming offers adults so much in terms of physical and mental health,” he said. “Also connecting with like-minded people afterwards with coffee and a chat.”
He added: “My reward is to witness achievements and the happy expressions on faces. I have many close friends because of teaching swimming.”
How Australian retirees contribute through unpaid work
Unpaid care for children and adults made up the largest share of the estimated contribution, valued at $10.6 billion each year. About 38 per cent of retirees provide care for grandchildren, ageing relatives or people living with disability.
Volunteering and community work were valued at a further $3.8 billion annually, while community leadership accounted for $1.4 billion and mentoring, coaching and skills sharing for $700 million.
The estimates were based on the work of about 2.4 million Australian retirees. The modelling valued unpaid care and volunteering at $50 an hour, mentoring and skills sharing at $75, and community leadership at $100.
On average, retirees contributed 224.9 hours of unpaid care each year, alongside 95.5 hours of volunteering or community work, 37.9 hours of community leadership and 28.1 hours of mentoring or skills sharing. Paid employment was not included.
Nancy Pachana, a University of Queensland professor of clinical geropsychology, said having meaning and purpose in retirement was closely linked to improved wellbeing.
“If one has meaning and purpose in retirement, not only is wellbeing improved, but also physical health, mental health and cognitive function are positively affected,” she said.
Professor Pachana said the skills and social capital of older Australians remained underused, with ageism contributing to difficulties for many people over 50 seeking employment.
“Many people over 50 find it difficult to find employment, robbing the economy of the extra value they could contribute,” she said.
The survey found that 82 per cent of Australians believed retirees’ economic contribution was under-recognised. Among retirees who said they were prevented from contributing more, 26 per cent cited a lack of suitable opportunities.
Financial incentives were identified as a possible way to increase participation by 37 per cent of those facing barriers. Health and wellbeing support and better access to local opportunities were each selected by 35 per cent, while a quarter said greater recognition of their experience and capabilities could help.
Professor Pachana said the traditional image of retirement no longer reflected the lives of many older Australians.
“The idea that one retires and sits back in a rocking chair is very outdated,” she said, pointing to continued unpaid work as well as paid employment and entrepreneurial activity.
The research also found an association between financial advice and the amount of time retirees spent contributing. Those who had received professional advice contributed an average of 8.3 hours a week, compared with 6.3 hours among those who had not.
The finding does not establish that financial advice causes greater participation, but Professor Pachana said forward planning could help people consider a wider range of options for retirement.
“The takeaway is not to put off planning – take small consistent steps and you will reap rewards,” she said.
