Retirement
Australians are still waiting too long to think about retirement
It’s hard to find the right time to start thinking about retirement, but many Australians keep missing the mark.
Australians are still waiting too long to think about retirement
It’s hard to find the right time to start thinking about retirement, but many Australians keep missing the mark.
Australians are getting older, but they aren’t getting wiser about retirement.
New research released by the Moreton Group has suggested that Australian attitudes towards retirement haven’t changed all that much over the past 20 years.
Back in 2001, research found that the average age of those looking for the advice needed to plan for retirement was approximately 58 years of age.
In 2021, the Moreton Group said that number has risen slightly to 59 years of age.
The story told by these two numbers is that Australians are waiting too long to think about their retirement, and things are only getting worse.
Moreton Group managing director Cameron Dickson said that these figures suggested that Australians were waiting until it was too late to begin thinking about retirement.
“People don’t plan for retirement like they do other financial milestones. They plan to pay off a house, start a business, pay for their children’s education, support their children’s wedding and even fund their own death, but not their retirement,” he said.
Pointing to data released by the Australian Bureau of Statistics, Mr Dickson noted that sickness, injury and disability were the most common driver of retirement, behind simply reaching the retirement age.
“With the right information people will learn they often don’t have to wait until they are eligible for the pension before retiring in some capacity. And they certainly shouldn’t wait until they are sick,” he said.
Mr Dickinson said that a large number of potential retirees put off and avoid the discussion outright, and that this can hurt them in the long run.
“People are quite often scared to think about life after work or afraid of what the answer may be when it comes to their finances, but in our experience they usually can look at retirement sooner than they expected,” he said.
Like any personal finance goal, Mr Dickinson said that planning for retirement was essential.
“Retirement is ultimately the end goal, but very few actually think about it in advance and put a plan on paper,” he said.
Mr Dickinson’s comments come as those within the financial advice world prepare for a significant rise in demand as more and more Baby Boomers approach retirement age.
Speaking at an Allianz webinar, investment specialist Tim Dowling described this trend as a light at the end of the tunnel after the recent difficulties faced by the sector.
"I think leaving the royal commission behind us, having adopted the learnings and adhering and adjusting to the demanding compliance regime, it's good to remember that advice is a critical component in people's lives,” he said.
About the author
About the author
Retirement
Why retirees should be encouraged to remain in the workforce
From an early age our society expounds that we should “respect our elders” and encourages the notion of “experience being invaluable”. Given our ageing population, over the next few decades,...Read more
Retirement
ASIC seeking out 'misleading' marketing by managed funds
The corporate regulator has commenced a surveillance into the marketing of managed funds. ...Read more
Retirement
New retirement savings targets aim to reduce uncertainty
The new standards aim to assist Australians understand how much they need to save for retirement. ...Read more
Retirement
Reap the benefits of planning your financial future
Taking control of financial planning during uncertain times such as the COVID-19 pandemic is proving greater benefits than “simply building a better monetary nest egg”, according to a retirement p...Read more
Retirement
Inheritances soar to $100bn a year
Rising house prices and growing super balances have pushed the value of inheritances higher. ...Read more
Retirement
SMSFs must seek new investments to avoid a ‘humble retirement’
Self-managed super funds should consider alternative investment opportunities. ...Read more
Retirement
Businesses need to rethink Australia’s ageing workforce: AustralianSuper
Australia’s top super fund has called for “fresh and innovative thinking” towards retirement. ...Read more
Retirement
How many Australians are on the pension?
Despite the growth in super over the last three decades, most Australian retirees are still turning to the Age Pension and other income support payment schemes offered by the government. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Retirement
Why retirees should be encouraged to remain in the workforce
From an early age our society expounds that we should “respect our elders” and encourages the notion of “experience being invaluable”. Given our ageing population, over the next few decades,...Read more
Retirement
ASIC seeking out 'misleading' marketing by managed funds
The corporate regulator has commenced a surveillance into the marketing of managed funds. ...Read more
Retirement
New retirement savings targets aim to reduce uncertainty
The new standards aim to assist Australians understand how much they need to save for retirement. ...Read more
Retirement
Reap the benefits of planning your financial future
Taking control of financial planning during uncertain times such as the COVID-19 pandemic is proving greater benefits than “simply building a better monetary nest egg”, according to a retirement p...Read more
Retirement
Inheritances soar to $100bn a year
Rising house prices and growing super balances have pushed the value of inheritances higher. ...Read more
Retirement
SMSFs must seek new investments to avoid a ‘humble retirement’
Self-managed super funds should consider alternative investment opportunities. ...Read more
Retirement
Businesses need to rethink Australia’s ageing workforce: AustralianSuper
Australia’s top super fund has called for “fresh and innovative thinking” towards retirement. ...Read more
Retirement
How many Australians are on the pension?
Despite the growth in super over the last three decades, most Australian retirees are still turning to the Age Pension and other income support payment schemes offered by the government. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
