The golden years of retirement are often painted as a time of leisure and freedom, a reward for decades of hard work.

However, for many Australian seniors, the picture is not as rosy as they had hoped, with financial security becoming an increasing concern amidst the rising cost-of-living crisis.

A recent study has shed light on the financial anxieties that are clouding the retirement dreams of many.

Surveying 1000 Australians over the age of 60, the YouGov study, commissioned by investment firm Challenger, revealed a stark reality: while retirees may score a 70 out of 100 on the Retirement Happiness Index—indicating a general contentment with their retired life—a significant two-thirds are troubled by the impact of the cost-of-living increases on their financial well-being.

This concern is not unfounded, as 38 per cent of respondents admitted to worrying about the possibility of depleting their funds during retirement.

While a study found that two-thirds of Aussies are worried about their financial stability amidst the cost-of-living crisis, Terry and Kerry Cavendish found financial stability by setting up an annuity. Credits: Facebook / Kerry Cavendish

The cost-of-living crisis is not just a buzzword—it's a tangible issue that creates a cloud of uncertainty for those trying to manage their finances on a fixed budget.

‘(The cost-of-living crisis) creates uncertainty today for people who are trying to live on a budget,’ Author and Retirement Expert Bec Wilson, asserted.

‘Financial and retirement literacy is actually really fundamental.’

‘If you don't understand the systems, you will have a natural fear of even looking at your super statement,’ she continued.

In the face of these challenges, some retirees found ways to navigate the financial turbulence.

Take Terry and Kerry Cavendish, for example, a retired couple who discovered their saving 'sweet spot' by taking advice from experts in setting up an annuity for regular income.

‘Every month, you know you're guaranteed to get that money, and it just gives you peace of mind, it's just a no-brainer, like set and forget, Kerry explained.

With this peace of mind, the Cavendishes have been able to enjoy their retirement to the fullest, indulging in overseas travel, spending quality time with their grandchildren, and pursuing their passion for vintage cars.

‘Everybody would have their views on what their dream is, this is our dream,’ Terry added.

The study also highlighted that engaging in various activities, maintaining mental wellbeing, and fostering a sense of purpose and social connection are key contributors to retirees' happiness.

However, money, mental health, and physical health remain the top concerns for those surveyed.

Challenger CEO Nick Hamilton reflected on the findings, stating, 'It's a really positive picture, we just need to ensure that financial security comes to more Australians.'

‘Underspending is the same as under-retiring, not knowing how much you can safely consume.’

For those retirees who are concerned about their financial future, there are resources available. Speaking to your super fund about money concerns is a good starting point.

Additionally, the Money Smart retirement income calculator is a useful tool that can help determine how much you need in super to support your desired lifestyle in retirement.

As the Challenger Retirement Happiness Index revealed insights into the factors influencing retirees' satisfaction, it prompts a closer examination of the financial considerations shaping retirement decisions.

While retirement is often envisioned as a period of leisure and fulfilment, the reality can prove to be more expensive than anticipated.

Understanding the financial implications of retirement becomes paramount, as individuals strive to ensure their financial security and comfort during this stage of life.

Delving into retirement planning, it is also important to accurately estimate the funds needed to retire comfortably, emphasising the necessity of informed financial preparation.

Moreover, the rising amount of superannuation required for retirement underscores the evolving landscape of retirement savings and the need for strategic financial planning to meet future needs.

These insights collectively highlight the significance of proactive financial management in achieving retirement happiness and security.

Key Takeaways

• Two-thirds of Australian retirees were concerned about their financial security due to the cost-of-living crisis, a YouGov study revealed.
• Although retirees scored a 70 out of 100 on the Retirement Happiness Index, 38 per cent feared running out of money during retirement.
• Some retirees, like Terry and Kerry Cavendish, found financial stability by setting up an annuity, which provides a regular and guaranteed income.
• Engaging in various activities, maintaining mental wellbeing, and fostering a sense of purpose and social connection were identified as key to retiree happiness, while money, mental health, and physical health remained top concerns.

Have you found ways to cope with the rising cost of living? What advice would you give to fellow retirees who are feeling the pinch? Join the conversation and share your tips and suggestions in the comments below.

 

[Rob44]

Any couple living on the OAP of $44 000 a year is well below the poverty level. However, Paul Keating the ALP bloke who organised means-testing of the old age pension and John Howard of children overboard fame who created CentreLink, are both on nice fat $500 000 pa salaries plus 1st Class family perks for screwing the elderly.

 

[Babbie]

Any couple living on the OAP of $44 000 a year is well below the poverty level. However, Paul Keating the ALP bloke who organised means-testing of the old age pension and John Howard of children overboard fame who created CentreLink, are both on nice fat $500 000 pa salaries plus 1st Class family perks for screwing the elderly.

Why don’t you try to enjoy your twilight years. Bitterness will only affect you, no one else.

 

[IAN3005]

Any couple living on the OAP of $44 000 a year is well below the poverty level. However, Paul Keating the ALP bloke who organised means-testing of the old age pension and John Howard of children overboard fame who created CentreLink, are both on nice fat $500 000 pa salaries plus 1st Class family perks for screwing the elderly.

Try $31,000 pa.

 

[AlanQ]

Try $31,000 pa.

I'd suggest Rob44 is closer to the mark on full aged pension (emphasis on FULL). Just under $40k for a couple, plus other possible allowances, rental assistance etc. (add $4500k).

 

[IAN3005]

I'd suggest Rob44 is closer to the mark on full aged pension. Just under $40k for a couple, plus other possible allowances, rental assistance etc. (add $4500k).

Mine is fact........ rental assistance what a joke.....

 

[AlanQ]

Any couple living on the OAP of $44 000 a year is well below the poverty level. However, Paul Keating the ALP bloke who organised means-testing of the old age pension and John Howard of children overboard fame who created CentreLink, are both on nice fat $500 000 pa salaries plus 1st Class family perks for screwing the elderly.

Welfare is not a right, it's based on eligibilty. Otherwise, on top of the generous super payments politicians would also be receiving the aged pension. Famously, Billy McMahon took the aged pension along with the equally generous super payments. To prevent those that could afford to self fund their retirement, means testing was introduced. The aged pension in this country is far more generous that most comparable economies of the world. Here there are people that have never ever works or paid income tax that get public housing, lucky to be paying $100 pw, so little they possibly don't get rental assistance. Free health that they've potentially never paid 1 cent towards, the list goes on.

 

[Observer]

Any couple living on the OAP of $44 000 a year is well below the poverty level. However, Paul Keating the ALP bloke who organised means-testing of the old age pension and John Howard of children overboard fame who created CentreLink, are both on nice fat $500 000 pa salaries plus 1st Class family perks for screwing the elderly.

 

[mylittletibbies]

The problem being that a
very,very large number of people never thought of the future and made no allowance for their old age and are now left to rely on the OAP.
I think that the bulk of us had the opportunities, itsa matter of whether or not you chose to take them.
There was plenty of work in the 60/70s,! you could work 2, 3 even 4 jobs if you wanted. Anybody could save and buy a house.
When I was 18 I had a 9 to 5 office job. Two mornings a week I got up at 4 am and did two hours work at a nearby race course before rushing home for a shower and off to work.
Three evenings I and two girlfriends worked as dancers at a local disco and weekends I took rides out at the riding school where I kept my horses.
When I got married my husband and I picked tomatoes for three months. Back breaking work but we saved enough for a deposit on our first home.
It all depends on how much work you are prepared to put in.

 

[Gsr]

I think all ex pollies get huge super, an undeserved over the top pension no matter what age they retire, all the lurks and perks they can get their hands on, all at taxpayers expense. They have no assets test for any of this and even when they move into other lucrative positions paying ridiculously high money they still get to keep all the above. Once they stop being a pollie they are just the same as everyone else, a private citizen, and should have to meet income and asset tests to get a pension and any lurks and perks. As none of them would qualify for any of it the budget would quickly return to surplus. Even as a pollie they are no more important to society than any other citizen, they just like to think they are. Unfortunately to date we have never had a pollie with enough guts, or one who doesn’t think he/she has the right to rip off the taxpayers for the rest of their lives, to legislate the changes needed to stop these outrageous rip offs.

 

[Babbie]

I think all ex pollies get huge super, an undeserved over the top pension no matter what age they retire, all the lurks and perks they can get their hands on, all at taxpayers expense. They have no assets test for any of this and even when they move into other lucrative positions paying ridiculously high money they still get to keep all the above. Once they stop being a pollie they are just the same as everyone else, a private citizen, and should have to meet income and asset tests to get a pension and any lurks and perks. As none of them would qualify for any of it the budget would quickly return to surplus. Even as a pollie they are no more important to society than any other citizen, they just like to think they are. Unfortunately to date we have never had a pollie with enough guts, or one who doesn’t think he/she has the right to rip off the taxpayers for the rest of their lives, to legislate the changes needed to stop these outrageous rip offs.

Well , here is your chance to get into politics and start the ball rolling for change!

 

[Gsr]

Well , here is your chance to get into politics and start the ball rolling for change!

Nah, bit too old now and I’ve never been tarred with the brush that would allow me to live a life of lies, ripping off the taxpayers, overstating my importance to society, self promotion, using my position to have the taxpayers fund my desire to have lots of holidays, at home and overseas under the guise of “need to go to” , etc. etc. etc. Lucky for us most of the population aren’t tarred with that brush.

 

[DrivingGirl]

Welfare is not a right, it's based on eligibilty. Otherwise, on top of the generous super payments politicians would also be receiving the aged pension. Famously, Billy McMahon took the aged pension along with the equally generous super payments. To prevent those that could afford to self fund their retirement, means testing was introduced. The aged pension in this country is far more generous that most comparable economies of the world. Here there are people that have never ever works or paid income tax that get public housing, lucky to be paying $100 pw, so little they possibly don't get rental assistance. Free health that they've potentially never paid 1 cent towards, the list goes on.

That is certainly not the majority of the older population however - it is the one that forever gets trotted out to make anyone who is unfortunate enough to not be able to work multiple valid reasons feel guilty.
Those of us who worked long hours well into our 60s and 70s are not being cared for as well as they could

 

[Vickers]

I am a broker (30+ yrs)...I am doing quite a few "Reverse Mortgages" where clients use their home as security with the loan amount based on the youngest owner (need to be 55+) and the value of the property.
NEVER need to make any repayments if you can't or don't wish to but if you don't the balance increases over time. Repaid on sale of the property or passing away. Sadly, is not cheap but solves cashflow problems for many older people.

 

[mylittletibbies]

That is certainly not the majority of the older population however - it is the one that forever gets trotted out to make anyone who is unfortunate enough to not be able to work multiple valid reasons feel guilty.
Those of us who worked long hours well into our 60s and 70s are not being cared for as well as they could

If you worked long hours into your 60s and 70s why would you need the government "to take care of you".
Surely you should have earned enough to take care of yourself.
I know some people have unfortunate lives, but anyone who was well enough to work to that age should not be needing government assistance, unless they wasted their money.

 

[Observer]

If you worked long hours into your 60s and 70s why would you need the government "to take care of you".
Surely you should have earned enough to take care of yourself.
I know some people have unfortunate lives, but anyone who was well enough to work to that age should not be needing government assistance, unless they wasted their money.

I'm a few years from retirement age and worked it out early, so now I no longer need to work and not expecting any government hand out. Gotta be smart with your money ;-)

 

[Observer]

 

[Observer]

 

[Babbie]

If you worked long hours into your 60s and 70s why would you need the government "to take care of you".
Surely you should have earned enough to take care of yourself.
I know some people have unfortunate lives, but anyone who was well enough to work to that age should not be needing government assistance, unless they wasted their money.

I agree. I still work a couple of days a week. I enjoy it and every bit helps. Everyone these days wants to be looked after. There is a huge sense of entitlement in this country.

 

[Observer]

I agree. I still work a couple of days a week. I enjoy it and every bit helps. Everyone these days wants to be looked after. There is a huge sense of entitlement in this country.

I believe I am entitled that you should look after me