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Aust seniors are happiest in world

THE current crop of retired Australians are the most contented senior citizens in the world.

But for the generation of baby boomers poised to redefine retirement as they leave work over the next decade, storm clouds are gathering on the horizon.

In a survey of 9300 retirees from 15 countries, the Axa Retirement Scope found 96 per cent of Australian retirees were happy.

No other country fared better. Canada reported the second-happiest retired population (94 per cent), while Portugal trailed the field at just 62 per cent.

But study co-ordinator and demographer Bernard Salt said this "stratospheric elation" was the calm before the storm, and likely never to be repeated.

By next year there will be an estimated 4.1 million baby boomers, the post-World War II generation born between 1946 and 1961.

The first boomer is due to retire aged 65 on July 1, 2011. And he or she would take into retirement a radical new attitude, Mr Salt said.

Where today's retirees, who grew up during the Depression and war years, were more frugal and settled, the boomers expected to maintain their more demanding lifestyle when they retired, he said.

Their consumerism, energy and activity would not stop working when they did.

The Axa study, conducted by Roy Morgan Research, found 30 per cent of working Australians wanted to live "elsewhere" (overseas or interstate) when they left full-time employment, compared with just 8 per cent of current retirees.

What's more, retirement would become "groovy". To be 50-something would be like being a teenager all over again, Mr Salt said.

The only problem is, the next wave of retirees won't have the funds to support the lifestyle.

The study found just 21 per cent of Australian workers had calculated their retirement income. "Baby boomers have a taste for the good life," Mr Salt said. "And they expect to keep it, even though their income will diminish. And I'm betting they'll struggle to do it.

"They've been lulled into a false sense of security by their compulsory contributions to superannuation since the 80s, but it won't be enough. I just don't think boomers will be as happy as the current senior citizens in retirement."

The result, as Treasurer Peter Costello predicted last year, is that Australians are likely to keep working for longer.

The average retirement age, currently about 55 years for the middle classes, was likely to bleed out to more than 60 within 10 years, Mr Salt said.