Aussie pre-retirees are sandwiched between the needs of ageing parents and dependent children, leaving many feeling gloomy about their own retirement, a new report reveals.
The Qantas Super CSBA Retirement Confidence Index (RCI) has found Aussie adults are feeling less confident they’ll have enough money to retire comfortable.
Between November 2017 and early April, the RCI result fell from 5.2 to 5.0.
That figure's based on an average rating of people's confidence in being able to afford a comfortable retirement on a scale of 0-10.
For Aussies between 40 and 59, the retirement outlook is bleaker than most and competing pressures of ageing parents and a hostile housing market preventing their kids’ access are to blame.
Among this group, retirement confidence fell from 27 per cent to 24 per cent.
Thirty-nine per cent say they have little or no confidence in affording a comfortable retirement, while 49 per cent predict they won’t have enough money and 47 per cent believe they won’t be able to rely on their super and other investments to support their financial wellbeing in their retirement years.
However, only 35 per cent of this age bracket actually know how much money they’ll need for retirement and only 44 per cent are actively involved in their own retirement planning.
Nearly half (48 per cent) consider external factors including regulatory, government, global and economic issues, a hurdle in preparing for retirement.
Over all age groups, this number is higher (54 per cent).
“Many people who are contemplating their retirement needs have a genuine fear of the unknown,” said Qantas Super CEO Michael Clancy.
“The antidote to this fear is awareness, education and quality advice, which will allow people to work with the resources they have to achieve the best retirement lifestyle possible.
“This is true for all age groups. Super really is your money and people need to own it.”
Nevertheless, he acknowledged that addressing retirement despondency will take more than individual action.
“Industry leadership is vital to help build confidence. Government and businesses have an important role to play in encouraging good behaviours around money and retirement planning, and encouraging people to take an active interest in their future,” Clancy said.
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