Why seniors belong in the workplace


International evidence supports the case to Let Pensioners Work if they want, or need, to do so.

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Employers exclude older Australians


A survey of more than 600 businesses, conducted by the Australian HR Institute (AHRI), shows that 70% of employers are excluding job candidates who are 55 or older.

According to the survey, 19% excluded applicants over 55 or with a disability. This is up from 11% in a 2024 survey and 15% in 2025.

The survey also found that many employers excluded candidates with long-term illness and mental illness were also excluded.

AHRI chief executive, Sarah McCann-Bartlett, told ABC News, "By restricting their willingness to recruit these candidates, employers are limiting their potential labour pool and, importantly, the diversity of their workforces."

Across the world, countries grappling with ageing populations are reassessing the role of older people in the workforce.

Japan, long known for its culture of respecting its senior citizens, offers one of the most striking examples. Its approach stands in sharp contrast to the situation in Australia, where National Seniors Australia (NSA) continues to advocate strongly for reform through its Let Pensioners Work campaign.

In Japan, respect for older workers does not merely manifest in social norms; it is built into workplace structures. Many companies continue to employ seniors well past traditional retirement age, even if this means moving them into less demanding roles.

This phenomenon is embodied in the madogiwazoku or “window tribe” – older employees who are paid to remain on staff despite having reduced responsibilities.

Rather than being dismissed, they are reassigned and allowed to continue contributing to workplace culture and stability. Often, as the name suggests, these people sit near the window.

This reflects long‑standing traditions of lifetime employment and seniority‑based pay, where loyalty is valued as highly as productivity.

This approach has a measurable effect: Japan now has one of the highest senior employment rates in the developed world, with more than a quarter of people aged 65+ still working.

This far surpasses countries such as the United States (18.6%) and the United Kingdom (10.9%). In Australia, it’s about 15%.

Many older Japanese want to stay in the workforce. Around 80% express a desire to continue working, with 70% preferring to remain with their current employer.

While Japan’s system is not without its flaws – reduced wages and semi‑retirement structures can frustrate older employees – the cultural respect afforded to senior workers remains a powerful driver of participation.

Even as automation reshapes global labour markets, Japan’s model acknowledges the social and economic value of retaining experienced workers.

Australia’s situation differs substantially. Here, the desire among older people to work is strong, but structural barriers persist.

NSA’s research shows that money is the primary motivator for pensioners considering re‑entering work, but many report ageism as a significant barrier. Meanwhile, complex pension income tests discourage older Australians from taking on more hours – or from working at all.

Through our Let Pensioners Work campaign, NSA argues that retaining older workers is essential, particularly in critical sectors such as aged care and agriculture. 

Let Pensioners Work


As part of our Retirement Income and Superannuation advocacy, National Seniors Australia (NSA) is calling for employment income to be exempt from the Age Pension income test.

You can read more about our Let Pensioners Work campaign here.

NSA is calling for employment income to be exempt from the Age Pension income test, noting that the current system effectively penalises seniors 50 cents in the dollar for every dollar earned above the Work Bonus threshold.

Our campaign push is backed by economic modelling showing that exempting work income from the pension income test could be cost‑neutral if a relatively small number of pensioners increased their workforce participation.

This would not only boost income for older Australians but also help address labour shortages and expand the national tax base.

The international evidence is clear: older people want to work, can contribute meaningfully, and are an essential resource in ageing economies.

Japan’s example demonstrates the powerful effect of cultural respect and supportive policy settings. Australia now faces a choice: continue to sideline willing older workers or embrace reforms that recognise their value.

NSA’s message is simple and compelling: If people want to work, they should be able to. And Australia will be stronger for it.

Related reading: Fortune, NSAWorld Economic Forum

Author

Brett Debritz

Brett Debritz

Communications Specialist, National Seniors Australia

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