Jacqueline Barton

Retirement isn’t what it used to be, and that’s great news for you

· ·

If you’re approaching retirement and wondering whether you’ll be ready to stop working completely, you’re not alone. The reality is, retirement in Australia is changing, and it will likely look quite different from what your parents experienced.

Recent analysis by KPMG of the Australian Bureau of Statistics labour force survey data[1] shows that Australians are working longer than ever before. Men now expect to retire at 67, while women anticipate finishing work at 65.3 years. That’s up by more than two years for men and over a year for women in just the past decade.

But here’s what’s interesting: this isn’t just about the rising Age Pension age. There’s a growing group of older Australians who genuinely want to work well past traditional retirement age, and experts are calling them ‘ageless workers’.

Twenty years ago, only one in ten men was still working at the age of 70. Today, it’s one in four. Even among men in their late seventies, almost one in ten remains in the workforce. For women, the shift has been even more dramatic, with participation rates for those in their seventies nearly doubling over the past decade.

Why the change?

The nature of work itself has evolved. If you’re in a professional or office-based role, working into your seventies is much more feasible than it would be in physically demanding jobs. As KPMG Urban Economist Terry Rawnsley aptly put it: pulling out a laptop at 75 is considerably easier than laying bricks.

The pandemic also played a role. Many workers delayed retirement plans due to travel restrictions, and after ticking off their bucket-list adventures, they’ve returned to the workforce refreshed and engaged.

The rise of semi-retirement

Perhaps the most encouraging trend is what’s happening between full-time work and complete retirement. Most men now spend about 2.8 years in this transition phase, while women typically spend around three years.

This “semi-retirement” phase – working part-time with flexibility – offers the best of both worlds. You can supplement your retirement savings, maintain social connections, stay mentally engaged, and potentially help support your children or grandchildren, all while enjoying more freedom than full-time work allows.

The message? You don’t have to choose between all-or-nothing anymore. Many Australians are discovering that a gradual transition into retirement, on their terms, can lead to a more fulfilling and financially comfortable lifestyle.

Call us to find out how we can help you transition to your retirement on your terms.

[1] https://kpmg.com/au/en/media/media-releases/2025/09/retirement-age-rises-as-older-australians-keep-working.html

The impact of a variable rate home loan as interest rates change

· ·

There were a series of interest rate increases, beginning in May 2022, and reaching its peak in November 2023. Rates then remained unchanged at 4.35% until the 0.25% cut in February 2025.

A recent study, Five Economic Themes That Will Dominate the Next Parliament, has revealed the consequences of the RBA interest rate hike cycle, with variable-rate mortgage holders having around $800 a month in additional repayments between mid-2022 and early 2024.

The research found that variable-rate mortgage holders paid $13,884 more in repayments than fixed-rate mortgage holders over the 18 months following interest rate rises.

This period of inflated interest rates placed immense strain on borrowers, especially those who were on a variable rate.

Despite the added strain, the study found that spending habits between fixed and variable rate mortgage borrowers hardly changed. 70% of borrowers funded the increases in mortgage repayments using savings. Just 26% had paid for the increased mortgage repayments with additional income streams.

The rate hike cycle also limited the number of people making excess mortgage repayments.

The research revealed that 70% of variable-rate borrowers made excess mortgage repayments before the rate hike cycle. As of the end of the study in April 2024, this dropped to around 25%.

The fluctuations in interest rates demonstrate the importance of establishing and maintaining an emergency fund buffer as an integral component of your strategic financial planning.

If you have not recently considered the impact of interest rate movements on your home loan, and your overall financial position, perhaps it’s time to reach out for a chat.

Investing in rare earth requires patience and perspective

· ·

Few investment sectors combine geopolitical intrigue, technological innovation and long-term growth potential quite like rare earth elements (REEs).

For Australians, the recent deal with the United States to supply rare earths to seed US$8.5 billion worth of new projects, has thrust the sector into the spotlight.i

What are rare earths?

Rare earth elements are a group of 17 metallic elements that, despite the name, are not particularly rare but are difficult and costly to refine. Their unique properties are essential in the powerful magnets that drive electronic devices such as headphones, speakers and computers, wind turbine generators, electric vehicles and medical technology such as magnetic resonance imaging (MRI).ii

They’re also used in lighting as well as screens and displays for TVs, smartphones and monitors and are vital in advanced defence systems.

In 2023, Australia was a top five global producer of 14 mineral commodities, including rare earths in addition to the more familiar bauxite, black coal, cobalt, gold, iron ore, lead, lithium, manganese, uranium and zinc.iii

Nonetheless, we’re a relatively small player in the market.

Almost half of the world’s known reserves of rare earths are in China.

China’s  estimated 44 million metric tonnes of reserves dwarf our 5.7 million and the 1.9 million in the United States. Brazil has about 21 million metric tonnes.iv

Production and processing

Reserves are one thing (and exploration in Australia and around the world is continuing apace to discover new fields) but production and processing is what makes the difference for investors.

China is leading the field by a wide margin. It extracted and processed some 270,000 tonnes in 2024. The US was next with 45,000 tonnes, followed by Myanmar (31,000) and Australia, Nigeria and Thailand, each on 13,000 tonnes.v

Australia’s strategic position

The deal recently signed in Washington – the US-Australia Framework for Securing Supply of Critical Minerals and Rare Earths – commits both countries to investing at least US$1 billion each over the next six months to accelerate mining, processing and supply chain development for critical minerals.

Two of the projects were announced by Prime Minister Albanese after his recent meeting with US President Trump.

One project is the Alcoa-Sojitz Gallium Recovery project in Wagerup, Western Australia.

The Australian federal government will provide up to US$200 million in concessional equity finance for the project. The US government is also making an equity investment and Japan has provided about half of the project costs so far.

The project will provide up to 10 per cent of total global supply of gallium, essential for defence and semiconductor manufacturing.

The second project is the Arafura Nolans project in the Northern Territory.

The Australian federal government is making a USD$100 million equity investment in the project. Once operational, this project is expected to supply 5 per cent of global rare earth demand by 2029.vi

A third project has also recently been announced: Astron Corporation’s Donald Rare Earth and Mineral Sands project in western Victoria. A joint venture between Astron Corporation and the US uranium company Energy Fuels. It’s expected to become the fourth-largest rare earth mine in the world outside China.vii

The landmark Australia-US deal is a response to China’s dominance in the rare earths market and Beijing’s recent export restrictions on rare earths, which have left many nervous about vulnerabilities in the supply chains for defence and high-tech industries.

The agreement aims to diversify global supply chains so that other countries rely less on China by accelerating project approvals, supporting local processing and encouraging more private investment through government-backed financing.

Investment opportunities and risks

For some investors, rare earths may be seen as a long-term opportunity given a prediction by the International Energy Agency that demand could double by 2040.viii

There are several ways to invest including:

  • Directly in ASX-listed companies such as Lynas Rare Earths (LYC), Arafura Rare Earths (ARU) or Iluka Resources (ILO)
  • Through exchange traded funds (ETFs) or managed funds that offer exposure to rare earths miners and processors
  • In private equity and venture capital. For high-net-worth investors, early stage mining and processing ventures may offer high risk, high reward potential

Of course, there are risks worth considering, with geopolitical volatility topping the bill. For example, global tensions or a change of mind by President Trump could easily disrupt the Australia-US deal.

Other risks include growing environmental concerns over the high water and energy demands for extracting and processing rare earth elements. There is also the risk of market manipulation and China’s ability to flood the market or further restrict exports, which could cause price volatility.

In any case, patience will be required. Mines can take as long as seven years to become operational.ix

The bottom line for investors is while rare earths are a sector still maturing, they are critical to a range of industries and expected to increase in value over the next decade. However, their share prices are sensitive to global headlines, politics and policy changes, so volatility is to be expected – particularly in the current environment.

As always, there is a lot to consider when weighing up investment opportunities and we are here to discuss any aspect of your investment strategy.

A look at global rare earths mine production in metric tonnes in 2024, as per data from US Geological Survey.

ABC News Graphics

i Historic critical minerals framework| Prime Minister of Australia

ii What Are Rare Earth Minerals Used For? | The Institute for Environmental Research and Education

iii Geoscience Australia

iv, v Mapping rare earth supplies | ABC News

vi Historic critical minerals framework| Prime Minister of Australia

vii Donald rare earth mine given major project status | ABC News

viii Outlook for key minerals | IEA

ix Many details remain buried in Australia-US rare earths deal | Crikey

How financial planning can help Australian retirees navigate today’s challenges

· ·

Australian retirees are facing unprecedented financial pressures. It’s no wonder that financial security weighs heavily on the minds of those in their retirement years, with homeowner couples needing up to $690,000 in superannuation savings, or $75,319[1] annually for a comfortable retirement, an increase of nearly $1,500 per year in just three months.

The reality is concerning. According to Colonial First State research, one in five Australians who have retired feel unprepared for retirement. Perhaps most troubling, almost one in four retirees use their pension payments to service debt. According to the Australian Bureau of Statistics, the burden is substantial – average household debt for Australians aged 55 and over has grown dramatically from $62,000 in 2003-04 to $242,000 in 2021-22. These challenges are compounded by rising living costs that affect those aged 65-74, particularly acutely.

The Value of Professional Guidance

Working with a qualified financial planner can make a meaningful difference in addressing these concerns. The evidence is compelling: Colonial First State research found that almost nine in ten advised Australians feel they are on track to reach their retirement goals, compared with less than half who have never received advice.

A financial planner brings clarity to complexity. We can help you understand how recent policy changes, such as the September 2025 pension increases of $29.70 per fortnight for singles and $44.80 combined for couples, and the revised assets test thresholds and adjusted deeming rates, may affect your personal situation. More importantly, we can help you make the most of these changes to your advantage.

Practical Solutions for Real Concerns

For retirees and pre-retirees without a clear plan, a financial planner can provide structure and direction. Research by the FPA found that pre-retirees who sought professional advice are almost three times as likely to have a good understanding of the financial resources required for retirement compared to those without advice. They can help develop comprehensive strategies that address:

  • Debt management: Creating realistic plans to reduce or eliminate the debt that affects nearly one in four retirees, while maintaining quality of life and financial security.
  • Income planning: Ensuring you’re receiving all entitled government benefits while structuring your superannuation and other assets tax-effectively to enhance your retirement income.
  • Longevity planning: Building strategies to ensure your money lasts throughout retirement. National Seniors Australia research shows that two-thirds of retirees worry about their income lasting, yet many underspend and end up with substantial wealth intact at death.
  • Investment positioning: Reviewing your portfolio to balance growth with capital preservation. Research shows that retirees receiving income from their superannuation savings are significantly more likely to be unconcerned about their finances in retirement.

Looking Forward with Confidence

The path to a comfortable retirement isn’t one-size-fits-all, and it’s never too late to seek support. Whether you’re approaching retirement or already enjoying it, professional financial advice can help transform worry into confidence. It’s about creating a roadmap that acknowledges your current reality while building toward the retirement you deserve.

Fidelity research found that Australians who had spoken to a professional adviser reported a higher quality of life, greater financial capability and resilience, and a stronger sense of meaning and purpose compared to those who remained unadvised. Despite these clear benefits, only 30% of Australians have sought professional advice.

With debt levels rising and cost-of-living pressures continuing to challenge budgets, the question isn’t whether you can afford financial advice; it’s whether you can afford to go without it. A good financial planner doesn’t just manage money; they provide peace of mind, helping you navigate today’s challenges while planning for tomorrow’s opportunities.

[1] https://www.superannuation.asn.au/consumers/retirement-standard/ March and June quarters 2025