Why Age discrimination in hiring is driving earlier retirement

Age discrimination is forcing Australian workers to retire years earlier than planned. Despite having extensive qualifications, many older workers struggle to find employment, with one report finding that 18 per cent of employers would not consider hiring someone over the age of 65 at all.

This trend is creating a growing gap between when Australians expect to retire and when they actually leave the workforce. It is also raising concerns about financial security and workforce participation.

However, experts warn that with Australia’s population ageing and skill shortages continuing across multiple industries, employers who overlook older workers may be missing out.

So, what’s driving this trend?

What impact does age discrimination in hiring have on workers?

According to the ABS, the majority of workers plan to retire when they reach the age of 65. However, data shows the actual average retirement age is 56. Experts attribute this to the fact that many employers are reluctant to hire older workers.

This is especially a problem for women. Studies indicate that most women reach peak earning capacity at around the age of 44. However, this is also the age where most women are raising a family.

Many find that by the time they return to the workforce, they are often overlooked for key positions.

Even those who remain in the workforce are experiencing challenges. Only 50% of older workers have access to career development opportunities compared to 75% of younger workers. This can hinder the future career prospects of older workers.

Experts say that in many cases, age discrimination in the workplace is not deliberate. However, that does not mean it’s not there.

How older workers can stay competitive in the job market

Experts say it’s vital to be able to demonstrate how your skills and experience can add value to an employer.

For example, you should highlight how your experience has led to quantifiable results in previous roles.

Many employers may also perceive older workers as inflexible. To counter this, it’s important to highlight your adaptability.

Some recruiters recommend only including the past 10 years of experience on resumes, rather than listing decades of employment history that allude to a job seeker’s age.

Doing so can reduce the risk of appearing overqualified.

However, others argue this may get you to the interview stage only to be dismissed.

Why employers shouldn’t ignore older workers

With many employers currently experiencing skills shortages and Australia’s population aging, experts say employers can no longer afford to overlook older workers.

They say many older workers carry high-level people skills. They are also reliable, carry a strong work ethic and have a willingness to learn. In fact, studies illustrate that many employers value the diverse skills and experience older workers bring to the workplace.

60% of employers said the departure of older workers from the workplace had led to a loss of skills.

For many older workers, navigating today’s job market can feel overwhelming. From addressing potential bias to presenting your experience in the strongest possible way, knowing how to position yourself is key. Having a clear, well-structured application that highlights your strengths can make a significant difference in how employers perceive your value.

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Article References

Ahwan, L (29 August 2025) ‘Age discrimination forcing Aussies to retire years earlier than planned’, Daily Telegraph, accessed 20 April 2026.

Penny, J (8 March 2026) ‘62 applications, no interview: 5 ways to tackle ageism in hiring’, Financial Review, accessed 20 April 2026.