Despite 79 per cent of retirees reporting they were happy, the highest-ranking demographic in Australia, the group remains largely pessimistic about their financial future, according to new research released by AMP.
When asked how they would feel in five years, more than half of the retirees said they were most pessimistic about their financial future.
The survey also showed you, perhaps, can buy happiness. Those with an income in excess of $250,000 were 14 per cent happier than those with an income of between $80,000 to $99,000.
AMP superannuation, retirement and investments director Vicki Doyle said it was no surprise that economic security ranked as the number one driver of happiness.
“Having a solid foundation in place is important but it’s not just about how much you have, but also how informed and confident you are with your choices,” Ms Doyle said.
Ms Doyle said it Australians need to construct a solid plan to avoid financial distress later on.
“Being actively engaged with your finances and having a plan in place can go a long way towards achieving economic security,” she said.
“Having and setting goals is a great motivator and gives people more satisfaction and happiness. Whether your goals are financial, relationship, or health-related, getting your goals clear and putting them in writing makes them more likely to be achieved.”
This begins with having a realistic idea of your expenses, according to Firefly Wealth director Adele Martin.
"The biggest mistake is really not understanding what your cost of living is and not knowing what they need to live off in retirement,” Ms Martin told Nest Egg.
“When I worked at a retiree practice, everyone would say they needed $1,000 a week to live off which was just a figure they rattled off because it sounded good. Then when they got into retirement, they actually needed $1,300 a week, a massive difference which meant they would end up running out of money much earlier.”