Are pensions not enough? Recent study shows startling statistics about retirement
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As we sail into the golden years of retirement, the expectation is often one of relaxation and enjoyment, a reward for decades of hard work.
However, for many Australians, this dream has been compromised by the stark reality of financial insecurity.
A recent study shed light on the growing concern among retirees and working Aussies, prompting many to reconsider their exit from the workforce.
Allianz Retire+ released their study titled, How Do We Make Retirements More Epic?, in partnership with retirement expert Bec Wilson.
The study painted a concerning picture among Aussie retirees and the workforce in general.
About 82 per cent of the study's respondents believed that the age pension falls short of meeting their retirement needs.
Among these respondents, 28 per cent consider working beyond the traditional retirement age.
Meanwhile, 39 per cent of the respondents were open to the idea of employment during retirement.
In contrast, 24 per cent of the survey's respondents believe that their retirement funds are enough to sustain them throughout retirement.
Lastly, 28 per cent of respondents remain undecided and have no definite retirement plans.
'This desire to continue some form of work signals a massive step change for retirement. It is no longer a line in the sand in an individual's working life,' Allianz Australia Life Insurance Chief Executive Adrian Stewart shared.
'It's not news that Australians are living longer, healthier lives and that today's retirees typically enjoy a more active lifestyle than previous generations,' Mr Stewart added.
However, this lifestyle shift came with a price.
'These require retirees to stretch their savings over multi-decade timeframes that will include unpredictable market conditions—such as those experienced recently—and personal challenges.'
The study also revealed a significant interest in products offering guaranteed income.
Over 75 per cent of respondents expressed keen interest in various income streams as a retirement funding source.
Despite this interest, there's a visible knowledge gap—as 49 per cent of respondents were aware of lifetime income streams but lacked detailed understanding.
On the other hand, the majority were eager to learn more about these investment plans.
'Australians are looking to embrace a second act that could span 25 years or more. Yet many don't feel financially prepared to navigate the transition,' Bec Wilson shared.
The desire for education and advice is strong as retirees seek to alleviate concerns about outliving their money.
So, what does this mean for elderly community members?
It's time to take a closer look at your retirement plans and lifestyle.
It also reminds us of the importance of financial literacy and planning.
Understanding various investment options is crucial to stretching your retirement funds further.
Financial experts could also tailor a retirement plan resonating with your life expectancy and lifestyle aspirations.
After all, retirement should be a time of enjoyment and fulfilment, not financial stress.
What do you think of this study? Have you found the age pension to be sufficient, or did you look for alternative income sources at some point? Sharea your thoughts and opinions with us in the comments below.
However, for many Australians, this dream has been compromised by the stark reality of financial insecurity.
A recent study shed light on the growing concern among retirees and working Aussies, prompting many to reconsider their exit from the workforce.
Allianz Retire+ released their study titled, How Do We Make Retirements More Epic?, in partnership with retirement expert Bec Wilson.
The study painted a concerning picture among Aussie retirees and the workforce in general.
About 82 per cent of the study's respondents believed that the age pension falls short of meeting their retirement needs.
Retirees and working Aussies believe that age pensions are not enough, hence their desire to learn about income-generating investments. Image Credit: Pexels/Pixabay
Among these respondents, 28 per cent consider working beyond the traditional retirement age.
Meanwhile, 39 per cent of the respondents were open to the idea of employment during retirement.
In contrast, 24 per cent of the survey's respondents believe that their retirement funds are enough to sustain them throughout retirement.
Lastly, 28 per cent of respondents remain undecided and have no definite retirement plans.
'This desire to continue some form of work signals a massive step change for retirement. It is no longer a line in the sand in an individual's working life,' Allianz Australia Life Insurance Chief Executive Adrian Stewart shared.
'It's not news that Australians are living longer, healthier lives and that today's retirees typically enjoy a more active lifestyle than previous generations,' Mr Stewart added.
However, this lifestyle shift came with a price.
'These require retirees to stretch their savings over multi-decade timeframes that will include unpredictable market conditions—such as those experienced recently—and personal challenges.'
The study also revealed a significant interest in products offering guaranteed income.
Over 75 per cent of respondents expressed keen interest in various income streams as a retirement funding source.
Despite this interest, there's a visible knowledge gap—as 49 per cent of respondents were aware of lifetime income streams but lacked detailed understanding.
On the other hand, the majority were eager to learn more about these investment plans.
'Australians are looking to embrace a second act that could span 25 years or more. Yet many don't feel financially prepared to navigate the transition,' Bec Wilson shared.
The desire for education and advice is strong as retirees seek to alleviate concerns about outliving their money.
So, what does this mean for elderly community members?
It's time to take a closer look at your retirement plans and lifestyle.
It also reminds us of the importance of financial literacy and planning.
Understanding various investment options is crucial to stretching your retirement funds further.
Financial experts could also tailor a retirement plan resonating with your life expectancy and lifestyle aspirations.
After all, retirement should be a time of enjoyment and fulfilment, not financial stress.
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