Are your retirement savings at risk? Shocking survey reveals two-thirds of Aussies are worried
- Replies 4
Retirement is a major milestone in life for all of us. A time when we’ve done our hard yards and earned the right to enjoy our later years in a secure financial position.
But unfortunately, for many Australians, this simply isn’t the case.
According to new research findings, two-in-three Australians feel that they don't have enough financial resources to retire comfortably.
It's no secret that it takes more and more money to retire in Australia these days. Rising housing and rental prices, higher interest rates and other modern financial obstacles make it difficult for us to plan and prepare for our golden years.
Unfortunately, a new survey commissioned by Findex, an advisory and accounting services company, has revealed that 52 per cent of Baby Boomers and 38 per cent of Generation X are ‘not confident’ about their money for retirement.
Millennials, on the other hand, followed closely behind, with 31 per cent marking themselves in the same boat.
According to analysts at Corelogic, rents in capital cities have risen on average 11.7 per cent in the past year, a new record that’s largely underpinned by the rising demand for units and apartments.
Meanwhile, regional rents have increased 2.2 per cent since the final quarter of last year and are up 4.5 per cent annually.
Unfortunately, this financial hardship takes a particularly big toll on older Australians.
Late last year, a parliamentary inquiry revealed that the face of homelessness in New South Wales is an older person aged over 55, with women particularly vulnerable to this growing housing insecurity.
Across Australia, it was found that one-in-seven people experiencing homelessness were aged 55 and over at the time of the last census in 2021 – with women more likely to be affected than men.
And it's not just renters feeling the pinch – homeowners face growing mortgage repayments as property prices continue to surge amid a string of interest rate hikes.
National Australia Bank reported that one-in-five customers are in what's known as a 'mortgage prison', meaning they are unable to renew the terms of their loans due to higher interest rates.
With these mounting financial concerns, it's no wonder so many Aussies are adopting a 'kick it down the road mentality' when it comes to retirement planning, as noted by Findex co-CEO Matt Games.
Unfortunately, this approach often results in insufficient savings and superannuation balances to face the tough economic climate.
For a comfortable retirement in today's world, the Association of Superannuation Funds of Australia Retirement Standard advises that retirees should have upwards of $500,000 in their super balance – markedly above the national average of $356,000 for men and $288,000 for women, respectively, in their early 60s.
What's more, the study found that half of the respondents don't think they have a good understanding of the financial resources required for a comfortable retirement.
Based on the findings, gender disparity was apparent in financial literacy. It was revealed that 27 per cent of women in the study reported their financial understanding as poor, compared to only 15 per cent of men.
Mr Games also said that many Australians perceive financial advice as being too costly, with 35 per cent stating that cost is a barrier to receiving financial advice and 32 per cent believing they don't earn enough to make it worthwhile.
Meanwhile, 19 per cent admitted to procrastination affecting their retirement planning.
‘The cost of advice is undoubtedly a barrier for some people,’ he said.
‘However, our projections demonstrate the value of advice where Aussies stand to gain eight per cent to 29 per cent in benefits depending on the age they start,’ Mr Games continued.
This Findex survey studied more than 1,000 participants and focused on those in the early planning stages of retirement to people retiring across metro and regional areas.
As the cost of living continues to rise with no sign of slowing, this study is a stark reminder of how risky a lack of preparation for retirement can be. But with some help, you can have access to affordable advice, track your expenses, and account for long-term savings.
Do you feel confident about your retirement funds? Are you retired and doing okay? Or maybe you’re still working and are putting off retirement because you cannot afford it? Tell us about your experience in the comments below.
But unfortunately, for many Australians, this simply isn’t the case.
According to new research findings, two-in-three Australians feel that they don't have enough financial resources to retire comfortably.
It's no secret that it takes more and more money to retire in Australia these days. Rising housing and rental prices, higher interest rates and other modern financial obstacles make it difficult for us to plan and prepare for our golden years.
Unfortunately, a new survey commissioned by Findex, an advisory and accounting services company, has revealed that 52 per cent of Baby Boomers and 38 per cent of Generation X are ‘not confident’ about their money for retirement.
Millennials, on the other hand, followed closely behind, with 31 per cent marking themselves in the same boat.
Many older Australians are worried about their retirement funds. Credit: Monica Silvestre/Pexels
According to analysts at Corelogic, rents in capital cities have risen on average 11.7 per cent in the past year, a new record that’s largely underpinned by the rising demand for units and apartments.
Meanwhile, regional rents have increased 2.2 per cent since the final quarter of last year and are up 4.5 per cent annually.
Unfortunately, this financial hardship takes a particularly big toll on older Australians.
Late last year, a parliamentary inquiry revealed that the face of homelessness in New South Wales is an older person aged over 55, with women particularly vulnerable to this growing housing insecurity.
Across Australia, it was found that one-in-seven people experiencing homelessness were aged 55 and over at the time of the last census in 2021 – with women more likely to be affected than men.
According to the survey, two in three Australians fear they don't have sufficient financial resources for retirement. Credit: Huy Phan/Pexels
And it's not just renters feeling the pinch – homeowners face growing mortgage repayments as property prices continue to surge amid a string of interest rate hikes.
National Australia Bank reported that one-in-five customers are in what's known as a 'mortgage prison', meaning they are unable to renew the terms of their loans due to higher interest rates.
With these mounting financial concerns, it's no wonder so many Aussies are adopting a 'kick it down the road mentality' when it comes to retirement planning, as noted by Findex co-CEO Matt Games.
Unfortunately, this approach often results in insufficient savings and superannuation balances to face the tough economic climate.
For a comfortable retirement in today's world, the Association of Superannuation Funds of Australia Retirement Standard advises that retirees should have upwards of $500,000 in their super balance – markedly above the national average of $356,000 for men and $288,000 for women, respectively, in their early 60s.
What's more, the study found that half of the respondents don't think they have a good understanding of the financial resources required for a comfortable retirement.
Based on the findings, gender disparity was apparent in financial literacy. It was revealed that 27 per cent of women in the study reported their financial understanding as poor, compared to only 15 per cent of men.
Mr Games also said that many Australians perceive financial advice as being too costly, with 35 per cent stating that cost is a barrier to receiving financial advice and 32 per cent believing they don't earn enough to make it worthwhile.
Meanwhile, 19 per cent admitted to procrastination affecting their retirement planning.
‘The cost of advice is undoubtedly a barrier for some people,’ he said.
‘However, our projections demonstrate the value of advice where Aussies stand to gain eight per cent to 29 per cent in benefits depending on the age they start,’ Mr Games continued.
This Findex survey studied more than 1,000 participants and focused on those in the early planning stages of retirement to people retiring across metro and regional areas.
As the cost of living continues to rise with no sign of slowing, this study is a stark reminder of how risky a lack of preparation for retirement can be. But with some help, you can have access to affordable advice, track your expenses, and account for long-term savings.
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