A special report by the NSW Treasury released with the state budget this Tuesday has provided an insight into state finances in 2050.

A key finding of the report was that impacts already expected by the ageing population have not fully materialised because older workers were staying in the workforce for longer.

Specifically:

The workforce participation rate for men in NSW aged over 65 has lifted from about 10 per cent in 2005 to 15.1 per cent in 2010-11. Treasury says this trend will continue and by 2028 one in five men over 65 will be working.

For women over 65, the participation rate has risen from about 3 per cent in the mid-2000s to above 7 per cent, and is expected to continue to rise to 12.3 per cent by 2050.

You can read more at the Sydney Morning Herald site HERE.

Why is this happening?

My feeling is that people are unable to retire due to the impact of the GFC on their retirement nest eggs and have to stay in the workforce longer until they can top-up their superannuation or their investments recover. Either way, I cannot see this trend changing anytime soon.

What about you? Are you staying in the workforce longer than necessary for financial reasons?