Study shows two-thirds of retirees feeling the pinch amid cost of living crunch
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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.
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.
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.
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.
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