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Retirement

1 in 2 Aussies feels unsure about their retirement

By Bianca Dabu
  • March 08 2021
  • Share

Retirement

1 in 2 Aussies feels unsure about their retirement

By Bianca Dabu
March 08 2021

With the majority of Australians concerned about their financial future, a superannuation provider has shared six tips to help Australians take control of their retirement planning.

Aussies feel unsure about their retirement

1 in 2 Aussies feels unsure about their retirement

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By Bianca Dabu
  • March 08 2021
  • Share

With the majority of Australians concerned about their financial future, a superannuation provider has shared six tips to help Australians take control of their retirement planning.

Aussies feel unsure about their retirement

A study released by AMP showed that the majority of Australia’s workforce feel in the dark about how much income they have or will need in retirement, with women feeling most anxious about leaving the workforce.

According to the superannuation provider, up to three in four workers recognise the importance of securing their futures, but 44 per cent believe they will not have enough to retire on. 

With older Australians concerned about their future, the study found that many plan to work longer or reign in their retirement expectations. 

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AMP’s general manager, workplace super engagement, Stephen Owen, said AMP’s financial wellness research showed that Australians feel underprepared and concerned about retirement; 50 per cent don’t know how much money they’ll have or need to achieve their desired living standard in retirement.

“Retirement is a critical period in our lives, and the retirement income system is complex, so it’s crucial people get access to information, guidance and good advice,” he said.

Mr Owen highlighted how retirement outcomes are especially important for women, who have higher levels of financial stress and are less likely to have retirement goals.

However, the research also pointed out that COVID has been a wake-up call, with many Australians now planning for their financial futures. 

“Encouragingly, people recognise the importance of planning for retirement, albeit are unsure where to begin,” Mr Owen said.

“The challenge is turning this positive intent into action, which is where the health check comes in, arming members with important information about the changes they can make now, even small ones, that can amount to big benefits later in life,” he said.

AMP has shared 6 tips to take control of your retirement planning

  1. Build your knowledge – Utilise online resources and education programs provided by your employer or super provider to improve your understanding of key financial drivers.
  2. Set goals – Connecting finances with goals helps us engage with our finances, and having a plan to achieve these goals can significantly ease stress.
  3. Create a budget that works for you – Be clear about exactly how much money you need to live the lifestyle you want. And be realistic. Writing up a budget may take an afternoon out of your diary, but it will help you to more easily identify where there’s room to save.
  4. Find and consolidate your super – According to the Australian Taxation Office (ATO) in June 2020, there was $13.9 billion in lost ATO-held super, so it pays to see if any of this is yours.
  5. Commit to your investment strategy – Market fluctuations are not unusual, and over the past year, the coronavirus pandemic had a huge impact on millions of Australians’ retirement plans. While these fluctuations can be worrying, don’t be too quick to make dramatic changes to your investment strategy. Seek advice or talk to your super provider before you make changes. Just by selecting a different investment option, you could save tens of thousands more money for retirement.
  6. Understand your entitlements – There are various benefits you may be able to access. Seniors over 60 have access to cheaper public transport, healthcare and prescription medications. Australians over 66 may also be eligible for the age pension, tax offsets and government loans.
1 in 2 Aussies feels unsure about their retirement
Aussies feel unsure about their retirement
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