Earn
Australians remain pessimistic about retirement outlook
Australians are no longer confident of a comfortable retirement despite the impact of COVID-19 expected to be short-lived, new research finds.
Australians remain pessimistic about retirement outlook
Australians are no longer confident of a comfortable retirement despite the impact of COVID-19 expected to be short-lived, new research finds.
Survey results from State Street have found that 42 per cent of Australians are not optimistic about their retirement outcomes, a level similar to 2018 suggesting the lack of confidence may not solely be attributed to COVID-19.
Despite the impacts of COVID-19, the report showed many Australians were optimistic about the figure.
“We wanted to assess whether the impact of COVID-19 was expected to continue into the long term, therefore having greater implications for retirement savings,” said Jonathan Shead, State Streets’ head of investments, Australia.
“The majority of Australian savers felt that the impact that COVID-19 would have on their finances would most likely last a year or less.”
The report found that COVID-19 is just one of the factors limiting retirement confidence. Whilst most thought that the financial impact of the crisis would be short-lived, 38 per cent of the Australian sample said that the COVID-19 situation was having a high impact on their retirement confidence levels.
“I am most concerned about the time it will take for my superannuation balance to recover from the fall in the stock market since the outbreak of COVID-19,” one responder noted.
However, other key areas impacting retirement confidence in Australia were no spare money to save for retirement, uncertainty about retirement plans, and lack of trust in the retirement system.
Despite fears of not having enough in retirement, the majority of Australians have not made changes to their retirement savings plan. The majority of the Australian sample (67 per cent) have not made any changes to the amount they save into their retirement savings plans; however, 21 per cent said they have reduced or stopped their rate of saving. Only 7 per cent of the UK sample had done the same.
“Members expect the impact of COVID-19 to be short-lived, and aren’t changing their retirement saving behaviour. Australians’ priorities are understandably going to be focused on the short and medium-term challenges associated with the crisis, but it is critical that retirement savings are not put on the back burner, leading to negative long-term consequences,” Mr Shead said.
About the author
About the author
Earn
Almost half of investors want to bolster portfolio in 6-12 months
A new survey has found that almost half of Australians with property in their pocket are actively looking to expand their investment portfolio in the next six to 12 months. ...Read more
Earn
Big 4 bank hit with $57.5m penalty
One of Australia’s big four banks has been ordered to pay a total of $57.5 million for fees-for-no-service breaches. ...Read more
Earn
Melbourne CBD faces $110bn hit over next 5 years
Melbourne’s Central Business District could have its economic output reduced by up to $110 billion over the next five years as a result of the restrictions put on the region due to the COVID-19 pand...Read more
Earn
JobKeeper 2.0 legislation passed
JobKeeper 2.0 legislation has now passed both houses, extending the payment scheme for a further six months. ...Read more
Earn
Business owners to benefit from virtual event
MyBusiness, nestegg’s sister brand, is bringing together an impressive line-up of decision makers, dignitaries, business owners and mental health advocates over three half-days in September, as part...Read more
Earn
What investment property expenses are tax deductible?
Investment properties (or properties used for income-producing purposes) have unique tax deductions that you can use to lower the tax that you are paying on your property. ...Read more
Earn
Will a court ruling see the demise of casual workers?
A court ruling that allows “permanent casual” staff entitlements, including sick and holiday pay, could deter businesses from hiring new staff, according to new research. ...Read more
Earn
Are older Aussies’ jobs threatened by COVID-19?
Mature workers are likely to have negative outcomes in the workplace, including poorer conditions and an increased likelihood of being made redundant, a workplace compensation lawyer explains. ...Read more
Earn
Almost half of investors want to bolster portfolio in 6-12 months
A new survey has found that almost half of Australians with property in their pocket are actively looking to expand their investment portfolio in the next six to 12 months. ...Read more
Earn
Big 4 bank hit with $57.5m penalty
One of Australia’s big four banks has been ordered to pay a total of $57.5 million for fees-for-no-service breaches. ...Read more
Earn
Melbourne CBD faces $110bn hit over next 5 years
Melbourne’s Central Business District could have its economic output reduced by up to $110 billion over the next five years as a result of the restrictions put on the region due to the COVID-19 pand...Read more
Earn
JobKeeper 2.0 legislation passed
JobKeeper 2.0 legislation has now passed both houses, extending the payment scheme for a further six months. ...Read more
Earn
Business owners to benefit from virtual event
MyBusiness, nestegg’s sister brand, is bringing together an impressive line-up of decision makers, dignitaries, business owners and mental health advocates over three half-days in September, as part...Read more
Earn
What investment property expenses are tax deductible?
Investment properties (or properties used for income-producing purposes) have unique tax deductions that you can use to lower the tax that you are paying on your property. ...Read more
Earn
Will a court ruling see the demise of casual workers?
A court ruling that allows “permanent casual” staff entitlements, including sick and holiday pay, could deter businesses from hiring new staff, according to new research. ...Read more
Earn
Are older Aussies’ jobs threatened by COVID-19?
Mature workers are likely to have negative outcomes in the workplace, including poorer conditions and an increased likelihood of being made redundant, a workplace compensation lawyer explains. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
