Australian retirees contribute $16.5bn in unpaid work annually, UniSuper research finds

Australian retirees contribute the equivalent of around 321,000 full-time jobs through unpaid care, volunteering, community leadership and mentoring each year, with their collective contribution valued at $16.5bn, according to research by UniSuper.

The Retire with Purpose research estimates that retirees contribute an average of 386.3 hours of unpaid work annually. 

However, 84% of Australians surveyed believe retirees’ skills and experience are not being used to their full potential, highlighting an opportunity to better engage older Australians as the country prepares for another 2.5 million people to enter retirement over the next decade.

The findings raise questions about how employers, communities and policymakers can better recognise older Australians’ capabilities and create opportunities for them to continue contributing beyond traditional retirement age.

Unpaid care accounts for the largest contribution

Unpaid care represents the largest share of retirees’ contribution, valued at $10.6bn annually. 

Around 38% of retirees provide unpaid care, including support for grandchildren, ageing relatives and people living with disability.

Volunteering and community work contribute a further $3.8bn each year, while community leadership is valued at $1.4bn. Mentoring, coaching and skills sharing account for another $700m.

The research used a replacement-cost approach, assigning hourly values to different activities before extrapolating the results across an estimated 2.4 million Australian retirees. 

Unpaid care and volunteering were valued at $50 an hour, mentoring and skills sharing at $75, and community leadership at $100.

Paid employment undertaken by retirees was excluded from the modelling.

Ageism limits opportunities to contribute

University of Queensland Professor of Clinical Geropsychology Nancy Pachana said having meaning and purpose in retirement was strongly associated with better 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 older Australians’ skills, experience and social capital remained underused, with age-related barriers also affecting access to employment.

“Many people over 50 find it difficult to find employment, robbing the economy of the extra value they could contribute,” she said.

“We can trace this to ageism, the judgment of value based on chronological age rather than skills and productivity potential.”

The research found that 82% of Australians surveyed believed retirees’ economic contribution was under-recognised. 

Meanwhile, 26% of retirees said a lack of suitable opportunities was preventing them from contributing more.

The findings point to the potential for organisations to reconsider how they engage older people, particularly through flexible work, mentoring, volunteering and opportunities to share professional knowledge.

Financial incentives and local opportunities could encourage participation

Among retirees who faced barriers to contributing more, 37% said financial incentives could help them increase their participation. 

Health and wellbeing support and better access to local opportunities were each identified by 35% of respondents, while a quarter said greater recognition of their experience and capabilities could encourage further involvement.

Professor Pachana said conventional perceptions of retirement no longer reflected the ways many older Australians remained active.

“The idea that one retires and sits back in a rocking chair is very outdated,” she said.

She noted that retirees continued to contribute through unpaid work, paid employment and entrepreneurial activity.

For employers, these findings highlight the potential value of creating opportunities that allow experienced professionals to remain involved in the workforce and community on terms that suit their circumstances. 

Such approaches could also provide avenues for knowledge transfer and mentoring across generations.

Retirement planning linked with higher contribution

The research also identified an association between receiving professional financial advice and the amount of time retirees spent contributing to unpaid activities.

Retirees who had received professional financial advice contributed an average of 8.3 hours a week, compared with 6.3 hours among those who had never received advice.

The findings establish an association rather than demonstrating that financial advice directly leads to greater participation.

Professor Pachana said planning ahead 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.

As millions more Australians approach retirement over the coming decade, the findings highlight the economic and social value of older Australians’ contributions and the opportunity to make better use of their skills, experience and time.